The Zoe Corporation has the following information for the month of March: Cost of direct materials used in production $19,102 Direct labor 29,364 Factory overhead 30,948 Work in process inventory, March 1 19,178 Work in process inventory, March 31 18,639 Finished goods inventory, March 1 23,387 Finished goods inventory, March 31 28,811 a. Determine the cost of goods manufactured. $fill in the blank 1 b. Determine the cost of goods sold. $fill in the blank 2
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 Zoe Corporation has the following information for the month of March:
| Cost of direct materials used in production | $19,102 |
| Direct labor | 29,364 |
| Factory overhead | 30,948 |
| Work in process inventory, March 1 | 19,178 |
| Work in process inventory, March 31 | 18,639 |
| Finished goods inventory, March 1 | 23,387 |
| Finished goods inventory, March 31 | 28,811 |
a. Determine the cost of goods manufactured.
$fill in the blank 1
b. Determine the cost of goods sold.
$fill in the blank 2
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