The accountant at Roland Industries provides you with the following information for the first quarter: Direct labor costs Direct materials inventory, January 1 Direct materials inventory, March 31 Direct materials purchased during the quarter Finished goods inventory, January 1 Finished goods inventory, March 31 Manufacturing overhead for the quarter Work-in-process inventory, January 1 Work-in-process inventory, March 31 Required: a. Compute the following. 1. Total prime costs 2. Total conversion costs 3. Total manufacturing costs 4. Cost of goods manufactured 5. Cost of goods sold $ 202,000 20,700 17,100 271,500 61,000 80,400 293,000 11,700 8,900
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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