Muscat Corporation has the following cost records for January 2019. Indirect factory labor 14,300 Factory utilities 10,100 Raw materials purchases 152,500 Factory repairs 12,600 Raw materials inventory 1/1/2019 16,700 Depreciation, factory equipment 9,440 Raw materials inventory, 1/31/19 22,800 Direct labor 175,600 Work in process, 1/1/2019 18,400 Factory insurance 8,360 Work in process, 1/31/19 25,200 Advertising costs 5,000 Finished goods, 1/1/19 5,000 Sales commissions 3,500 Finished goods, 1/31/19 7,500 Cost of shipping 2,500 What is the direct Materials used for January 2019:
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.
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