The following information was reported by AS Company for the month of September 2019. The total cost of direct materials purchased and the cost of goods manufactured during September is? The total cost of direct materials purchased = Cost of goods manufactured = September 1 September 30 Direct materials 80000 100000 Work in process finished goods 50000 70000 Finished goods 120000 140000 Direct labor cost 240000 Factory overhead 216000 Cost of goods sold 766000
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 information was reported by AS Company for the month of September 2019. The total cost of direct materials purchased and the cost of goods manufactured during September is?
The total cost of direct materials purchased =
Cost of goods manufactured =
|
|
September 1 |
September 30 |
|
Direct materials |
80000 |
100000 |
|
Work in process finished goods |
50000 |
70000 |
|
Finished goods |
120000 |
140000 |
|
Direct labor cost |
|
240000 |
|
Factory |
|
216000 |
|
Cost of goods sold |
|
766000 |
- Total purchases of raw materials amounted to 350000. The ending inventory of raw materials is 20000 more than the beginning inventory. The raw materials used for the period is?
Raw materials used =
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