Skylar Company reported the following year-end information: Beginning work in process inventory $1,500,000 Beginning raw materials inventory 700,000 Ending work in process inventory 800,000 Ending raw materials inventory 300,000 Raw materials purchased
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.
Skylar Company reported the following year-end information:
Beginning work in process inventory $1,500,000
Beginning raw materials inventory 700,000
Ending work in process inventory 800,000
Ending raw materials inventory 300,000
Raw materials purchased 200,000
Direct labor 500,000
Manufacturing overhead 900,000
Skylar's Company's cost of goods manufactured for the year is?
Calculation of cost of goods manufactured of skylar's company are as follows.
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