WIP, beginning has a balance of 100,000 (consist of Job1 with cost of 40,000; Job 2 costing 10,000 and Job 3.) Raw materials purchased totaled P 400,000; Total Payroll for production is 200,000, net of deductions of 20,000 (SSS, Pag ibig and W/tax). Raw materials inventory increased by 120,000 and indirect materials used amounted to 50,000. Indirect labor cost incurred is 10,000. Overhead cost is applied at 50% of Direct labor cost. At the end of the period, only Job 3 is still incomplete where total direct labor cost and direct materials of 40,000 and 60,000, respectively, were added during the period. What 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.
6. WIP, beginning has a balance of 100,000 (consist of Job1 with cost of 40,000;
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