Product cost flows (LO 3) The following T-accounts record the operations of Roddick Co.: Direct Materials Work in Process Finished Goods Beginning Balance 10,000 Beginning Balance 15,000 Beginning Balance 25,000 Purchases ? 60,000 Direct Material ? ? COGM ? Direct Labor 48,000 COGS ? Overhead 72,000 ? Ending Balance 12,000 Ending Balance 23,000 Ending Balance 16,000 Required a.Calculate the amount of direct materials purchased during the period. bCalculate the direct materials used in production during the period. cCalculate the total manufacturing cost for the period. dCalculate the cost of goods manufactured for the period. eCalculate the cost of goods sold for the period.
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.
Product cost flows (LO 3) The following T-accounts record the operations of Roddick Co.:
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Direct Materials
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Work in Process
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Finished Goods
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||||||
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Beginning Balance
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10,000
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Beginning Balance
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15,000
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Beginning Balance
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25,000
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|
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Purchases
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?
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60,000
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Direct Material
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?
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?
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COGM
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?
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|
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Direct Labor
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48,000
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COGS
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?
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|||||
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72,000
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|||||||
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?
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||||||||
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Ending Balance
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12,000
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Ending Balance
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23,000
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Ending Balance
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16,000
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Required
a.Calculate the amount of direct materials purchased during the period.
bCalculate the direct materials used in production during the period.
cCalculate the total
dCalculate the cost of goods manufactured for the period.
eCalculate the cost of goods sold for the period.
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