You are given the following information for the year ended 31 October 20X7: $ Purchases of raw materials 112,000 Returns inwards 8,000 Decrease in inventories of raw materials 8,000 Direct wages 42,000 Carriage outwards 4,000 Carriage inwards 3,000 Production overheads 27,000 Increase in work-in-progress 10,000 The value of factory cost of goods completed is A $174,000 B $182,000 C $183,000 D $202,000
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.
You are given the following information for the year ended 31 October 20X7:
$
Purchases of raw materials 112,000
Returns inwards 8,000
Decrease in inventories of raw materials 8,000
Direct wages 42,000
Carriage outwards 4,000
Carriage inwards 3,000
Production overheads 27,000
Increase in work-in-progress 10,000
The value of
A $174,000
B $182,000
C $183,000
D $202,000
Step by step
Solved in 2 steps with 1 images