The following cost information is presented for Phoenix Ltd. for the most recent period. Cost of direct material used in manufacturing $ 92,900 Direct labour costs 25,900 Manufacturing overhead 7,400 Sales commissions at 8% of sales 32,900 Opening finished goods inventory 9,900 Opening work-in-process inventory 6,900 Ending finished goods inventory 22,900 Ending work-in-process inventory 17,900 What was the cost of goods manufactured for Phoenix?
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.
6. The following cost information is presented for Phoenix Ltd. for the most recent period.
| Cost of direct material used in manufacturing | $ | 92,900 | |
| Direct labour costs | 25,900 | ||
| Manufacturing |
7,400 | ||
| Sales commissions at 8% of sales | 32,900 | ||
| Opening finished goods inventory | 9,900 | ||
| Opening work-in-process inventory | 6,900 | ||
| Ending finished goods inventory | 22,900 | ||
| Ending work-in-process inventory | 17,900 | ||
What was the cost of goods manufactured for Phoenix?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
