Superman Company has the following costs and expenses for the year ending December 21, 2X20. Raw materials, 1/1/20 P30,000 Property taxes, factory building P6,000 Raw materials, 12/31/20 20,000 Sales revenue 1,500,000 Raw materials purchases 205,000 Delivery expenses 100,000 Work-in-process, 1/1/20 80,000 Sales commissions 150,000 Work-in-process, 12/31/20 50,000 Indirect labor 105,000 Finished goods, 1/1/20 110,000 Factory machinery rent 40,000 Finished goods, 12/31/20 120,000 Factory utilities 65,000 Direct labor 350,000 Depreciation, factory building 24,000 Factory manager’s salary 35,000 Administrative expenses 300,000 Insurance, factory 14,000 Requirement: Prepare a cost of goods manufactured schedule for Superman Company for Note: Assume that all raw materials used were direct materials. Prepare an income statement for Superman Company for 2020. Assume that Superman Company’s accounting records show the balances of the following current asset accounts: Cash P17,000, Accounts Receivable (net) P120,000, Prepaid Expenses P13,000, and Short-Term Investments P26,000. Prepare the current assets section of the balance sheet for Superman Company as of December 31, 2020.
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.
Superman Company
Superman Company has the following costs and expenses for the year ending December 21, 2X20.
|
Raw materials, 1/1/20 |
P30,000 |
Property taxes, factory building |
P6,000 |
|
Raw materials, 12/31/20 |
20,000 |
Sales revenue |
1,500,000 |
|
Raw materials purchases |
205,000 |
Delivery expenses |
100,000 |
|
Work-in-process, 1/1/20 |
80,000 |
Sales commissions |
150,000 |
|
Work-in-process, 12/31/20 |
50,000 |
Indirect labor |
105,000 |
|
Finished goods, 1/1/20 |
110,000 |
Factory machinery rent |
40,000 |
|
Finished goods, 12/31/20 |
120,000 |
Factory utilities |
65,000 |
|
Direct labor |
350,000 |
|
24,000 |
|
Factory manager’s salary |
35,000 |
Administrative expenses |
300,000 |
|
Insurance, factory |
14,000 |
|
|
Requirement:
- Prepare a cost of goods manufactured schedule for Superman Company for Note: Assume that all raw materials used were direct materials.
- Prepare an income statement for Superman Company for 2020.
- Assume that Superman Company’s accounting records show the balances of the following current asset accounts: Cash P17,000,
Accounts Receivable (net) P120,000, Prepaid Expenses P13,000, and Short-Term Investments P26,000. Prepare the current assets section of thebalance sheet for Superman Company as of December 31, 2020.
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