The following data (in thousands of dollars) have been taken from the accounting records of Karstone Corporation for the just completed year. Sales: $880 Raw materials inventory, beginning: $20 Raw materials inventory, ending: $30 Purchases of raw materials: $160 Direct labor: $180 Manufacturing overhead: $230 Administrative expenses: $100 selling expenses: $130 work in process inventory, beginning: $80 work in process inventory, ending: $30 Finished goods in inventory, beginning: $120 Finished goods in inventory, ending: $100 The cost of goods sold for the year (in thousands of dollars) was: $620 $580 $720 $630 Show work and calculation
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 data (in thousands of dollars) have been taken from the accounting records of Karstone Corporation for the just completed year.
Sales: $880
Raw materials inventory, beginning: $20
Raw materials inventory, ending: $30
Purchases of raw materials: $160
Direct labor: $180
Manufacturing
Administrative expenses: $100
selling expenses: $130
work in process inventory, beginning: $80
work in process inventory, ending: $30
Finished goods in inventory, beginning: $120
Finished goods in inventory, ending: $100
The cost of goods sold for the year (in thousands of dollars) was:
$620
$580
$720
$630
Show work and calculation
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