Shubarquduq Coal Mine's (SCM) manufacturing costing system is comprised of a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The below information is extracted from the accounting system of the SCM. For Particular Date For Year of 2025 WIP inventory, 01.01.2025 $14 Plant utilities $ 30 DM inventory, 31.12.2025 23 Indirect manufacturing labor 61 FG inventory, 31.12.2025 63 Depreciation—plant and equipment 81 Accounts payable, 31.12.2025 40 Revenues 951 Accounts receivable, 01.01.2025 27 Miscellaneous manufacturing overhead 32 WIP inventory, 31.12.2025 7 Marketing, distribution, and customer-service costs 245 FG inventory, 01.01.2025 55 Direct materials purchased 336 Accounts receivable, 31.12.2025 40 Direct manufacturing labor 109 Accounts payable, 01.01.2025 36 Plant supplies used 14 DM inventory, 01.01.2025 17 Property taxes on plant 6 Required: Calculate DM used.
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.
Shubarquduq Coal Mine's (SCM)
|
For Particular Date |
|
|
For Year of 2025 |
|
|
WIP inventory, 01.01.2025 |
$14 |
|
Plant utilities |
$ 30 |
|
DM inventory, 31.12.2025 |
23 |
|
Indirect manufacturing labor |
61 |
|
FG inventory, 31.12.2025 |
63 |
|
|
81 |
|
Accounts payable, 31.12.2025 |
40 |
|
Revenues |
951 |
|
|
27 |
|
Miscellaneous manufacturing overhead |
32 |
|
WIP inventory, 31.12.2025 |
7 |
|
Marketing, distribution, and |
245 |
|
FG inventory, 01.01.2025 |
55 |
|
Direct materials purchased |
336 |
|
Accounts receivable, 31.12.2025 |
40 |
|
Direct manufacturing labor |
109 |
|
Accounts payable, 01.01.2025 |
36 |
|
Plant supplies used |
14 |
|
DM inventory, 01.01.2025 |
17 |
|
Property taxes on plant |
6 |
Required:
- Calculate DM used.
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