Raynor Company has the following data:Direct labor $76,000Direct materials used 84,000Total manufacturing overhead 65,000Ending work in process 30,000Beginning work in process 45,000InstructionsCompute (a) total manufacturing costs and (b) cost of goods manufactured.(Note: No need to prepare a schedule. Just post the dollar amount for the given question)
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.
Raynor Company has the following data:
Direct labor $76,000
Direct materials used 84,000
Total manufacturing overhead 65,000
Ending work in process 30,000
Beginning work in process 45,000
Instructions
Compute (a) total
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