Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $305,000 $277,200 Work in process 214,200 238,600 Finished goods 162,800 190,500 January 31 Direct labor $562,000 Materials purchased during the month 607,000 Factory overhead incurred during the month: Indirect labor 60,600 Machinery depreciation 36,000 Heat, light, and power 12,900 Supplies 8,100 Property taxes 8,720 Miscellaneous costs 16,300 Required: a. Prepare a cost of goods manufactured statement for January. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. b. Determine the cost of goods sold for January.
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.
|
Inventories
|
January 1
|
January 31
|
| Materials | $305,000 | $277,200 |
| Work in process | 214,200 | 238,600 |
| Finished goods | 162,800 | 190,500 |
|
|
January 31
|
| Direct labor | $562,000 |
| Materials purchased during the month | 607,000 |
| Factory |
|
| Indirect labor | 60,600 |
| Machinery |
36,000 |
| Heat, light, and power | 12,900 |
| Supplies | 8,100 |
| Property taxes | 8,720 |
| Miscellaneous costs | 16,300 |
| Required: | |
| a. Prepare a cost of goods manufactured statement for January. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. | |
| b. Determine the cost of goods sold for January. |
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