Warren Manufacturing began business on January 1. During its first year of operation, Warren worked on five industrial jobs and reported the following information at year-end: Job 1 Job 2 Job 3 Job 4 Job 5 $1,000 $7,500 $4,200 $3,400 $1,500 20,000 13,600 12,500 800 2,300 7,300 200 Oct 15 Not completed Not sold Nov 1 Not sold N/A N/A N/A N/A Direct Materials Direct Labor Allocated Mfg. Overhead Job completed: Job sold: Revenues: 12,000 1,500 OA. $43,300 OB. $33,700 OC. $23,200 O D. $20,100 6,000 Sep 1 Sep 12 $39,000 Jun 30 Jul 10 $25,000 What was the balance in Finished Goods Inventory at year-end?
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.
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