Raw material (1-1-03) Rs 12,500 Work-in-Process (1-1-03) 6,300 Finished Goods (1-1-03) 12,500 Sales 678,600 Sales return 15,000 Purchases of raw material 245,000 Administrative expense 70,000 Marketing expense 55,000 Indirect material 8,000 Indirect labor 4,500 Raw material (31-12-03) Rs 32,000 Work-in-Process (31-12-03) 16,500 Finished Goods (31-12-03) 25,000 Direct labor 125,000 Other factory overhead 17,600 Repair and maintenance 10,000 Insurance-factory 12,000 Depreciation-factory 22,000 Required: 1. Statement of cost of goods manufactured; 2. Statement of cost of goods sold; and 3. Income Statement
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.
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Raw material (1-1-03) Rs 12,500 Work-in-Process (1-1-03) 6,300 Finished Goods (1-1-03) 12,500 Sales 678,600 Sales return 15,000 Purchases of raw material 245,000 Administrative expense 70,000 Marketing expense 55,000 Indirect material 8,000 Indirect labor 4,500 |
Raw material (31-12-03) Rs 32,000 Work-in-Process (31-12-03) 16,500 Finished Goods (31-12-03) 25,000 Direct labor 125,000 Other factory Repair and maintenance 10,000 Insurance-factory 12,000 |
Required:
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