urchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process, March 1 22,000 Work in process, March 31 23,500 Finished goods inventory, March 1 21,000 Finished goods inventory, March 31
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.
Zoe Corporation has the following information for the month of March:
| Purchases | $92,000 |
| Materials inventory, March 1 | 6,000 |
| Materials inventory, March 31 | 8,000 |
| Direct labor | 25,000 |
| Factory overhead | 37,000 |
| Work in process, March 1 | 22,000 |
| Work in process, March 31 | 23,500 |
| Finished goods inventory, March 1 | 21,000 |
| Finished goods inventory, March 31 | 30,000 |
| Sales | 257,000 |
| Sales and administrative expenses | 79,000 |
a. Prepare a schedule of cost of goods manufactured.
| Zoe Corporation | |||
| Statement of Cost of Goods Manufactured | |||
| For Month Ended March 31 | |||
| $fill in the blank fa4cf9fb503af87_2 | |||
| Direct Materials: | |||
| $fill in the blank fa4cf9fb503af87_4 | |||
| fill in the blank fa4cf9fb503af87_6 | |||
| $fill in the blank fa4cf9fb503af87_8 | |||
| fill in the blank fa4cf9fb503af87_10 | |||
| Cost of direct materials used | $fill in the blank fa4cf9fb503af87_11 | ||
| fill in the blank fa4cf9fb503af87_13 | |||
| fill in the blank fa4cf9fb503af87_15 | |||
| Total |
fill in the blank fa4cf9fb503af87_16 | ||
| Total manufacturing costs | $fill in the blank fa4cf9fb503af87_17 | ||
| fill in the blank fa4cf9fb503af87_19 | |||
| Cost of goods manufactured | $fill in the blank fa4cf9fb503af87_20 |
b. Prepare an income statement for the month ended March 31.
| Zoe Corporation | ||
| Income Statement | ||
| For Month Ended March 31 | ||
| $fill in the blank 25f997080ffc02d_2 | ||
| Cost of goods sold: | ||
| $fill in the blank 25f997080ffc02d_4 | ||
| fill in the blank 25f997080ffc02d_6 | ||
| $fill in the blank 25f997080ffc02d_8 | ||
| fill in the blank 25f997080ffc02d_10 | ||
| Cost of goods sold | fill in the blank 25f997080ffc02d_11 | |
| Gross Profit | $fill in the blank 25f997080ffc02d_12 | |
| Operating expenses: | ||
| fill in the blank 25f997080ffc02d_14 | ||
| $fill in the blank 25f997080ffc02d_16 |
c. Prepare only the inventory section of the
| Zoe Corporation | |
| Balance Sheet | |
| For Month Ended March 31 | |
| Inventory: | |
| Materials | $fill in the blank a02e67098061032_1 |
| Work in process | fill in the blank a02e67098061032_2 |
| Finished goods | fill in the blank a02e67098061032_3 |
| Total inventory | $fill in the blank a02e67098061032_4 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
