Create a spreadsheet with an output section that: calculates the ending balance of Work-in-Process Inventory (provide detail with Job number) calculates the ending balance of Finished Goods (provide detail with Job number) calculates the ending balance of Cost of Goods Sold (provide detail with Job number)
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.
Materials requisitioned: $5,000 for Job #600 and $6,250 for Job #601 and $400 for indirect materials. Labor used: 675 hours for Job #600 and 720 hours for Job #601 and 180 hours for indirect labor. (Assume a labor rate of $24 per hour for all of these workers.)
In addition, the factory supervisor who oversaw these operations earned $6,400 during the period.
Rent and utilities for the factory used for this production for the period were $3,780 and $890 respectively. Depreciation on factory equipment was $2,300 for the period.
Manufacturing overhead was applied at a rate of $11.92 per direct labor hour.
Job #600 was completed this month and sold. The selling price was 140% of
Any overapplied or underapplied overhead should be closed directly to Cost of Goods Sold for the period.
Create a spreadsheet with an output section that:
- calculates the ending balance of Work-in-Process Inventory (provide detail with Job number)
- calculates the ending balance of Finished Goods (provide detail with Job number)
- calculates the ending balance of Cost of Goods Sold (provide detail with Job number)
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