The following information is available for the QRS Corporation for 2019: Inventories January 1 December 31 Materials $351,000 $436,800 Work in process 631,800 592,800 Finished goods 608,400 576,000 Advertising expense $ 296,400 Depreciation expense-office equipment 42,120 Depreciation expense-factory equipment 56,160 Direct labor 670,800 Heat, Light and Power-Factory 22,460 Indirect Labor 78,750 Materials purchased 659,800 Office salaries expense 185,000 Property taxes-factory 18,500 Property taxes-office building 32,400 Rent Expense-factory 32,000 Sales 3,010,000 Sales salaries expense 420,000 Supplies-factory 15,400 Miscellaneous costs-factory 9,500 Instructions: Prepare the 2019 statement of cost of goods manufactured. Prepare the 2019 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 information is available for the QRS Corporation for 2019:
Inventories January 1 December 31
Materials $351,000 $436,800
Work in process 631,800 592,800
Finished goods 608,400 576,000
Advertising expense $ 296,400
Depreciation expense-factory equipment 56,160
Direct labor 670,800
Heat, Light and Power-Factory 22,460
Indirect Labor 78,750
Materials purchased 659,800
Office salaries expense 185,000
Property taxes-factory 18,500
Property taxes-office building 32,400
Rent Expense-factory 32,000
Sales 3,010,000
Sales salaries expense 420,000
Supplies-factory 15,400
Miscellaneous costs-factory 9,500
Instructions:
- Prepare the 2019 statement of cost of goods manufactured.
- Prepare the 2019 income statement
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