The following were taken from the books of Marvin Company. January 1 March 31 Raw materials ₱268,000 ₱167,000 Work in process 0 0 Finished goods ₱43,000 ? (100 units) (200 units) Materials purchased ₱1,946,700 Direct labor 2,125,800 Factory overhead 764,000 Sales (12,400 units at ₱535) The company uses the FIFO method for costing inventories. 7. The number of units manufactured is: a. 11,900 c. 12,500 b. 12,000 d. 15,200 8. The cost of goods manufactured per unit is: a. ₱300 c. ₱395 b. ₱350 d. ₱420 9. The cost of goods sold is: a. ₱4,091,500 c. ₱4,901,500 b. ₱4,109,500 d. ₱4,910,5
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.
Use the following to answer the next three questions:
The following were taken from the books of Marvin Company.
January 1 March 31
Raw materials ₱268,000 ₱167,000
Work in process 0 0
Finished goods ₱43,000 ?
(100 units) (200 units)
Materials purchased ₱1,946,700
Direct labor 2,125,800
Factory
Sales (12,400 units at ₱535)
The company uses the FIFO method for costing inventories.
7. The number of units manufactured is:
a. 11,900 c. 12,500
b. 12,000 d. 15,200
8. The cost of goods manufactured per unit is:
a. ₱300 c. ₱395
b. ₱350 d. ₱420
9. The cost of goods sold is:
a. ₱4,091,500 c. ₱4,901,500
b. ₱4,109,500 d. ₱4,910,500
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