Required information EX 3-27 (Algo) Job-Order Costing Basics (LO 3-2, 3-4, 3-6) [The following information applies to the questions displayed below.] Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January. Type Finished goods Work in process Raw material January 1 $ 125,000 233,000 133,000 January 31 $ 117,000 251,000 124,000 The following additional data pertain to January operations. Raw material purchased Direct labor Actual manufacturing overhead Actual selling and administrative expenses Cost of goods sold $ 191,000 400,000 170,000 115,000 The company applies manufacturing overhead at the rate of 60 percent of direct-labor cost. Any overapplied or underapplied manufacturing overhead is accumulated until the end of the year. EX 3-27 (Algo) Part 4 Compute the cost of goods sold for January. 4. Compute the cost of goods sold for January.
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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![Required information
EX 3-27 (Algo) Job-Order Costing Basics (LO 3-2, 3-4, 3-6)
[The following information applies to the questions displayed below.]
Bodin Company manufactures finger splints for kids who get tendonitis from playing
video games. The firm had the following inventories at the beginning and end of the
month of January.
Type
Finished goods
Work in process
Raw material
January 1
$ 125,000
233,000
133,000
The following additional data pertain to January operations.
Raw material purchased
Direct labor
Actual manufacturing overhead
Actual selling and administrative expenses
January 31
$ 117,000
251,000
124,000
The company applies manufacturing overhead at the rate of 60 percent of direct-labor
cost. Any overapplied or underapplied manufacturing overhead is accumulated until the
end of the year.
4. Compute the cost of goods sold for January.
Cost of goods sold
$ 191,000
400,000
170,000
115,000
EX 3-27 (Algo) Part 4 Compute the cost of goods sold for January.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcfc3fedd-b44a-4551-9fed-13649e143e43%2F5cf847b4-8740-4c12-ae70-11b62a35971d%2Fp291t6_processed.jpeg&w=3840&q=75)
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