In September, J Dogg Company purchased materials costing $455,000 and incurred direct labor cost of $550,000. Overhead totaled $850,000 for the month. Information on inventories was as follows: Materials Work in process Finished goods Required: Sept 1 $50,000 65,000 10,500 Sept 30 $55,000 55,000 12,500 A. Calculate the cost of direct materials used during September. B. Calculate the total manufacturing cost for September. C. Calculate the cost of goods manufactured for September. D. Calculate the cost of goods sold for September.
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.
Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.
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