Pharmally Biologic Inc has provided data concerning the company's Manufacturing Overhead account for the month of April. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was ₱5,200,000 and the total of the credits to the account was ₱5,600,000. Which of the following statements is TRUE? Group of answer choices Manufacturing overhead transferred from Finished Goods to the Cost of Goods Sold during the month was ₱5,600,000. Manufacturing overhead for the month was underapplied by ₱400,000. The actual manufacturing overhead incurred during the month was ₱5,600,000. Manufacturing overhead applied to Work in Process for the month was ₱5,600,000. Refer to the T-account below: Raw Materials DEBIT CREDIT Balance ₱ 15,000 (9) ₱ 75,000 (5) 85,000 Balance 25,000 Entry (9) could represent which of the following? Group of answer choices Requisitions of raw materials to be used in production. Purchases of raw materials. Overhead cost applied to Work in Process. Payments for raw materials.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Pharmally Biologic Inc has provided data concerning the company's Manufacturing
Manufacturing overhead transferred from Finished Goods to the Cost of Goods Sold during the month was ₱5,600,000.
Manufacturing overhead for the month was underapplied by ₱400,000.
The actual manufacturing overhead incurred during the month was ₱5,600,000.
Manufacturing overhead applied to Work in Process for the month was ₱5,600,000.
Refer to the T-account below:
| Raw Materials | |||
| DEBIT | CREDIT | ||
| Balance | ₱ 15,000 | (9) | ₱ 75,000 |
| (5) | 85,000 | ||
| Balance | 25,000 |
Entry (9) could represent which of the following?
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