The following selected account balances are provided for Delray Mfg. Sales $ 1,135,000 Raw materials inventory, beginning 41,000 Work in process inventory, beginning 54,300 Finished goods inventory, beginning 61,900 Raw materials purchases 156,100 Direct labor 220,000 Factory supplies used (indirect materials) 24,400 Indirect labor 48,000 Repairs—Factory equipment 5,250 Rent cost of factory building 60,000 Advertising expense 98,000 General and administrative expenses 129,000 Raw materials inventory, ending 43,100 Work in process inventory, ending 44,100 Finished goods inventory, ending 71,700 Prepare its schedule of cost of goods manufactured for the current year ended December 31. DELRAY MFG. Schedule of Cost of Goods Manufactured For Year Ended December 31, Year 1 Direct materials Raw materials available for use 0 Direct materials used $0 Factory overhead: Total factory overhead costs 0 Total manufacturing costs 0 Total cost of work in process 0 Cost of goods manufactured $0
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 selected account balances are provided for Delray Mfg.
| Sales | $ | 1,135,000 |
| Raw materials inventory, beginning | 41,000 | |
| Work in process inventory, beginning | 54,300 | |
| Finished goods inventory, beginning | 61,900 | |
| Raw materials purchases | 156,100 | |
| Direct labor | 220,000 | |
| Factory supplies used (indirect materials) | 24,400 | |
| Indirect labor | 48,000 | |
| Repairs—Factory equipment | 5,250 | |
| Rent |
60,000 | |
| Advertising expense | 98,000 | |
| General and administrative expenses | 129,000 | |
| Raw materials inventory, ending | 43,100 | |
| Work in process inventory, ending | 44,100 | |
| Finished goods inventory, ending | 71,700 | |
Prepare its schedule of cost of goods manufactured for the current year ended December 31.
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