Radziewicz Inc. uses a job-order costing in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company's cost of goods manufactured for December was $128,000 and its beginning and ending inventories were: Inventories: Beginning Ending Work in process $14,000 $16,000 Finished goods $55,000 $42,000 During the month, the manufacturing overhead cost incurred was $66,000 and the manufacturing overhead cost applied was $69,000. Required: Determine the cost of goods sold that would appear on the income statement for December; in other words, determine the cost of goods sold after adjustment for any underapplied or overapplied overhead.
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.
Radziewicz Inc. uses a
|
Inventories: |
Beginning |
Ending |
|
Work in process |
$14,000 |
$16,000 |
|
Finished goods |
$55,000 |
$42,000 |
During the month, the
Required:
Determine the cost of goods sold that would appear on the income statement for December; in other words, determine the cost of goods sold after adjustment for any underapplied or overapplied overhead.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
