The following information was obtained from the records of Appleton Corporation during the current year: • Manufacturing Overhead was applied at a rate of 100 percent of direct labor dollars. • Beginning value of inventory follows: ▪ Beginning Work in Process Inventory, $9,000. ▪ Beginning Finished Goods Inventory, $14,000. • During the period, Work in Process Inventory decreased by 20 percent, and Finished Goods Inventory increased by 25 percent. • Actual manufacturing overhead costs were $94,000. • Sales were $412,000 • Adjusted Cost of Goods Sold was $305,000. Required: Use the preceding information to find the missing values in the following table: Direct Materials Used Direct Labor Item Manufacturing Overhead Applied Total Current Manufacturing Costs Plus: Beginning Work in Process Inventory Less: Ending Work in Process Inventory Cost of Goods Manufactured Plus: Beginning Finished Goods Inventory Less: Ending Finished Goods Inventory Unadjusted Cost of Goods Sold Over/Underapplied overhead Amount $ 123,700 89,000 $ 89,000 301,700 9,000 7,200 $ 303,500 14,000 17,500 $ 300,000 5,000
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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