The related data of Emma Frost Company: Purchases of raw materials P90,500 Direct labor cost 125,700 Selling costs (total) 42,000 Administrative costs (total) 56,000 Manufacturing overhead costs (total) 340,000 Raw materials inventory, beginning 31,800 Work in process inventory, beginning 27,000 Finished goods inventory, beginning 42,000 Raw materials inventory, ending 7,000 Work in process inventory, ending 35,000 Finished goods inventory, ending 15,000 How much is the cost of goods manufactured?
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 related data of Emma Frost Company:
Purchases of raw materials P90,500
Direct labor cost 125,700
Selling costs (total) 42,000
Administrative costs (total) 56,000
Raw materials inventory, beginning 31,800
Work in process inventory, beginning 27,000
Finished goods inventory, beginning 42,000
Raw materials inventory, ending 7,000
Work in process inventory, ending 35,000
Finished goods inventory, ending 15,000
How much is the cost of goods manufactured?
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