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 $ Direct Materials: $ $ Cost of direct materials used $ Total manufacturing costs incurred Total manufacturing costs $ Cost of goods manufactured $ b. Prepare an income statement for the month ended March 31. Zoe Corporation Income Statement For Month Ended March 31 $ Cost of goods sold: $ $ Cost of goods sold Gross Profit $ Operating expenses: $ c. Prepare only the inventory section of the balance sheet. Zoe Corporation Balance Sheet For Month Ended March 31 Inventory: Materials $ Work in process Finished goods Total inventory $
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 | |||
| $ | |||
| Direct Materials: | |||
| $ | |||
| $ | |||
| Cost of direct materials used | $ | ||
| Total |
|||
| Total manufacturing costs | $ | ||
| Cost of goods manufactured | $ |
b. Prepare an income statement for the month ended March 31.
| Zoe Corporation | ||
| Income Statement | ||
| For Month Ended March 31 | ||
| $ | ||
| Cost of goods sold: | ||
| $ | ||
| $ | ||
| Cost of goods sold | ||
| Gross Profit | $ | |
| Operating expenses: | ||
| $ |
c. Prepare only the inventory section of the balance sheet.
| Zoe Corporation | |
| Balance Sheet | |
| For Month Ended March 31 | |
| Inventory: | |
| Materials | $ |
| Work in process | |
| Finished goods | |
| Total inventory | $ |
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