January 31 $145,500 Inventories January 1 Materials $180,000 Work in process Finished goods 334,600 290,700 675,000 715,000 Direct labor $2,260,000 Materials purchased during January Factory overhead incurred during January: 1,375,000 Indirect labor 115,000 Machinery depreciation Heat, light, and power Supplies 90,000 55,000 18,500 Property taxes 10,000 Miscellaneous costs 33,100
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.
Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows:
Please see the attachments:
a. Prepare a cost of goods manufactured statement for January.
b. Determine the cost of goods sold for January.
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