The following T-accounts represent September activity. Required: Compute the missing amounts indicated by the letters (a) through (i). Materials Inventory BB (9/1) 8,500 (a) 4,500 (b) EB (9/30) 8,900 Work-In-Process Inventory BB (9/1) 23,300 178,600 (e) 121,000 100,100 EB (9/30) 17,200 Finished Goods Inventory BB (9/1) 14,500 (e) (f) EB (9/30) (g) Cost of Goods Sold 395,900 Applied Overhead Control (d) Manufacturing Overhead Control 121,000 4,500 36,200 38,300 3,300 Wages Payable 124,300 162,000 (c) 36,200 119,500 EB (9/30) Accumulated Depreciation—Plant & Equipment 200,900 BB (9/1) (h) 239,200 EB (9/30) Accounts Payable—Material Suppliers 105,000 Prepaid Expenses BB(9/1) 23,500 (i) EB(9/30) 20,200
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 T-accounts represent September activity.
Required: Compute the missing amounts indicated by the letters (a) through (i).
| Materials Inventory | |||
| BB (9/1) | 8,500 | ||
| (a) | 4,500 | ||
| (b) | |||
| EB (9/30) | 8,900 |
| Work-In-Process Inventory | |||
| BB (9/1) | 23,300 | ||
| 178,600 | (e) | ||
| 121,000 | |||
| 100,100 | |||
| EB (9/30) | 17,200 |
| Finished Goods Inventory | |||
| BB (9/1) | 14,500 | ||
| (e) | (f) | ||
| EB (9/30) | (g) |
| Cost of Goods Sold | |||
| 395,900 | |||
| Applied |
|||
| (d) | |||
| Manufacturing Overhead Control | |||
| 121,000 | |||
| 4,500 | |||
| 36,200 | |||
| 38,300 | |||
| 3,300 |
| Wages Payable | |||
| 124,300 | |||
| 162,000 | (c) | ||
| 36,200 | |||
| 119,500 | EB (9/30) |
| 200,900 | BB (9/1) | ||
| (h) | |||
| 239,200 | EB (9/30) |
| Accounts Payable—Material Suppliers | |||
| 105,000 | |||
| Prepaid Expenses | |||
| BB(9/1) | 23,500 | ||
| (i) | |||
| EB(9/30) | 20,200 |
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