The Whipped Cream Department of the John Kinky Toy Factory has the information below available for the month of March. Identify the missing numbers. An (*) will require a number, but will not be graded. Write your five answers below. Costs of Goods Manufactured Work in process inventory, March 1 17,000 Materials, March 1 6,000 Purchase of materials 85,000 Cost of materials available for use * Less Materials, March 31 7,000 Cost of materials placed in production Direct Labor 25,000 Factory Overhead: Indirect Labor 15,000 Indirect Materials Other factory supplies & utilities costs 9.000 Total Factory Overhead 34,000 Total manufacturing costs added ____*____ Total Manufacturing costs * Less: Work in Process inventory, March 31 18,500 Cost of good 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 Whipped Cream Department of the John Kinky Toy Factory has the information below available for the month of March. Identify the missing numbers. An (*) will require a number, but will not be graded. Write your five answers below.
Costs of Goods Manufactured
Work in process inventory, March 1 17,000
Materials, March 1 6,000
Purchase of materials 85,000
Cost of materials available for use *
Less Materials, March 31 7,000
Cost of materials placed in production
Direct Labor 25,000
Factory
Indirect Labor 15,000
Indirect Materials
Other factory supplies & utilities costs 9.000
Total Factory Overhead 34,000
Total
Total Manufacturing costs *
Less: Work in Process inventory, March 31 18,500
Cost of good Manufactured
Income Statement
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