The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year: Sales $1,980 Selling expenses $ 280 Factory overhead $460 Direct labor $400 Administrative expenses $300 Direct materials purchased during year $240 Finished goods inventory, January 1 $240 Finished goods inventory, December 31 $320 Materials inventory, January 1 $80 Materials inventory, December 31 $140 Work in process inventory, January 1 $140 Work in process inventory, December 31 $100 Required: Enter all amounts in thousands of dollars. a. Determine of the direct materials used in production during the year. b. Determine of goods manufactured for the year. c. Determine cost of goods sold for the year. d. Determine net income for the year.
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.
The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year:
Sales $1,980
Selling expenses $ 280
Factory overhead $460
Direct labor $400
Administrative expenses $300
Direct materials purchased during year $240
Finished goods inventory, January 1 $240
Finished goods inventory, December 31 $320
Materials inventory, January 1 $80
Materials inventory, December 31 $140
Work in process inventory, January 1 $140
Work in process inventory, December 31 $100
Required:
Enter all amounts in thousands of dollars.
a. Determine of the direct materials used in production during the year.
b. Determine of goods manufactured for the year.
c. Determine cost of goods sold for the year.
d. Determine net income for the year.
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