Company XYZ has raw materials at the beginning of August of OMR200,000. During August, the company purchased additional raw materials of OMR30,000. During August also, the company used OMR180,000 raw materials; OMR80,000 directly on the production process and OMR100,000 related to maintenance of administrative cars. How much balance in the raw materials by the end of August? Select one: O a. OMR50,000 O b. OMR80,000 O c. None of the given answers Od. OMR150,000
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.
Balance of raw material at the end of august = Beginning of raw material + Purchased of raw material - Raw material issued
Step by step
Solved in 2 steps
