Current information for the Healey Company follows: Beginning raw materials inventory $ 15,700 Raw material purchases 65,000 Ending raw materials inventory 17,100 Beginning work in process inventory 22,900 Ending work in process inventory 28,500 Direct labor 45,300 Total factory overhead 30,500 All raw materials used were direct materials. Healey Company's total manufacturing costs for the year are
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.
Current information for the Healey Company follows:
| Beginning raw materials inventory | $ 15,700 |
|---|---|
| Raw material purchases | 65,000 |
| Ending raw materials inventory | 17,100 |
| Beginning work in process inventory | 22,900 |
| Ending work in process inventory | 28,500 |
| Direct labor | 45,300 |
| Total factory |
30,500 |
All raw materials used were direct materials. Healey Company's total
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