The following information is available for Casey Manufacturing Company for the month ending January 31, 20xx: Cost of direct materials used in production 390,000 Direct labor 336,000 Work in process inventory, Jan 1 162,000 Work in process inventory, Jan 31 170,400 Total factory overheard 234,000 Determine Casey’s cost of goods manufactured for the month ended January 31, 20xx.
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 information is available for Casey Manufacturing Company for the month ending January 31, 20xx:
|
Cost of direct materials used in production |
390,000 |
|
Direct labor |
336,000 |
|
Work in process inventory, Jan 1 |
162,000 |
|
Work in process inventory, Jan 31 |
170,400 |
|
Total factory overheard |
234,000 |
Determine Casey’s cost of goods manufactured for the month ended January 31, 20xx.
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