X Company reported the following year- end information: Beginning Raw Materials Inventory S70,000 Ending Raw Materials Inventory 60,000 Beginning Work in Process Inventory 126,000 Ending Work in Process Inventory 190,000 Raw Materials purchased 120,000 Direct Labor 210,000 Manufacturing Overhead 520,000 Selling and Administrative Expenses 198,000 Refer to the above, what was the cost of raw materials used? * $190,000 $130,000 O $110,000 None of the above
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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