Ybarra Products began operations in 207. During its first year, the company purchased raw materials costing $84,000 and used $63,000 on those materials in the production of its products. The company’s manufacturing operations also incurred labor cost of $58,000 and overhead cost of $28,000. At year-end 2017, Ybarra had $29,000 of partially completed products in work in process inventory and $35,000 in finished goods inventory. What was Ybarra Company’s cost of good s sold in 2017?
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.
Ybarra Products began operations in 207. During its first year, the company purchased raw materials costing $84,000 and used $63,000 on those materials in the production of its products. The company’s manufacturing operations also incurred labor cost of $58,000 and
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