a]. Prime Cost c]. Conversion Cost e]. Income from Operations[Net Income] b]. Cost of goods manufactured d]. Cost of goods sold
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.
Subject: Cost managment & accounting
QUESTION – 14.**
On October 1, the Florida Company had the following inventories: Materials, $ 24,000; work in process, $ 12,000; and finished goods, $ 35,000. During the month, materials purchases totaled $ 56,000. Direct labor for October was $40,000, at a uniform wage of $ 6.40 per hour. Marketing and administrative expenses for the month amounted to 10% of net sales. Inventories on October 31 were as follows: materials, $ 20,000; work in process, $8,000; and finished goods, $ 40,000. Net sales for October totaled $ 200,000. Factory overhead is applied on the basis of $ 8 per direct labor hour.
REQUIRED:
a]. Prime Cost c]. Conversion Cost e]. Income from Operations[Net Income]
b]. Cost of goods manufactured d]. Cost of goods sold
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