The following are related transactions of YZX manufacturing company. Particulars Amt ($) Raw materials purchase from suppliers 11,89,000 Wages to productive workers 52,500 Stock of raw material (1-1-19) 95,000 Stock of raw material (31-12-19) 91,500 Stock of finished goods (1-1-19) 84,000 Stock of finished goods(31-12-19) 71,000 Stock of work-in-process(1-1-19) 48,000 Stock-of work-in-process(31-12-19) 45,000 Selling expense 11,400 Repair and maintenance 18,000 Sales to customers 32,11,000 Freight in 21,000 Factory rent and power 2,15,000 Outward return 9,000 Wages to unproductive labour 53,750 supplies 24,000 Depreciation of plant & machinery 31,500 Direct chargeable expense 21,500 Sundry factory expenses 1,10,000 Salesman’s salaries & commission 36,500 Inward return 11,500 Discount to suppliers 10,000 Office rent 22,500 Sundry office expenses 16,500 Advertisement expense 23,500 Carriage outward 12,500 Required: (a) Prepare Three statement (i) Cost of goods sold statement (ii) Cost sales statement (iii) 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.
The following are related transactions of YZX manufacturing company.
|
Particulars |
Amt ($) |
|
Raw materials purchase from suppliers |
11,89,000 |
|
Wages to productive workers |
52,500 |
|
Stock of raw material (1-1-19) |
95,000 |
|
Stock of raw material (31-12-19) |
91,500 |
|
Stock of finished goods (1-1-19) |
84,000 |
|
Stock of finished goods(31-12-19) |
71,000 |
|
Stock of work-in-process(1-1-19) |
48,000 |
|
Stock-of work-in-process(31-12-19) |
45,000 |
|
Selling expense |
11,400 |
|
Repair and maintenance |
18,000 |
|
Sales to customers |
32,11,000 |
|
Freight in |
21,000 |
|
Factory rent and power |
2,15,000 |
|
Outward return |
9,000 |
|
Wages to unproductive labour |
53,750 |
|
supplies |
24,000 |
|
|
31,500 |
|
Direct chargeable expense |
21,500 |
|
Sundry factory expenses |
1,10,000 |
|
Salesman’s salaries & commission |
36,500 |
|
Inward return |
11,500 |
|
Discount to suppliers |
10,000 |
|
Office rent |
22,500 |
|
Sundry office expenses |
16,500 |
|
Advertisement expense |
23,500 |
|
Carriage outward |
12,500 |
Required:
(a) Prepare Three statement
(i) Cost of goods sold statement
(ii) Cost sales statement
(iii) Income statement
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