ASAP Natin ‘To! Corporation’s northwestern facility provided the following information for the last calendar year: Beginning inventory: Direct Materials P50,800 Work in process 58,500 Ending inventories: Direct Materials P21,500 Work in process 23,500 During the year, direct materials purchased amounted to P150,000, direct labor cost was P200,000, and overhead cost was P324,700. There were 100,000 units produced. What is the total cost of direct materials used in production? P179,300 P50,800 P150,000 P21,500 What is the cost of goods manufactured? P739,000 P704,000 P762,500 P179,300 How much is the cost of conversion? P524,700 P379,300 P704,000 P904,000 How much is the total prime cost? P524,700 P704,000 P904,000 P379,300 What is the total manufacturing cost? P379,300 P524,700 P904,000 P704,000
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.
ASAP Natin ‘To! Corporation’s northwestern facility provided the following information for the last calendar year: Beginning inventory: Direct Materials P50,800 Work in process 58,500 Ending inventories: Direct Materials P21,500 Work in process 23,500 During the year, direct materials purchased amounted to P150,000, direct labor cost was P200,000, and overhead cost was P324,700. There were 100,000 units produced.
What is the total cost of direct materials used in production?
P179,300
P50,800
P150,000
P21,500
What is the cost of goods manufactured?
P739,000
P704,000
P762,500
P179,300
How much is the cost of conversion?
P524,700
P379,300
P704,000
P904,000
How much is the total prime cost?
P524,700
P704,000
P904,000
P379,300
What is the total
P379,300
P524,700
P904,000
P704,000
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