Marigold Company produces small gasoline-powered engines for model airplanes. Mr. Williams, Marigold's CFO, has presented you with the following cost information: Direct Materials Inventory, beginning $ Direct Materials Inventory, ending $ Work in Process Inventory, beginning Work in Process Inventory, ending Direct labor Direct materials purchases. Insurance, factory Depreciation, factory Depreciation, executive offices Indirect labor Utilities, factory Utilities, executive offices Property taxes, factory Property taxes, executive offices $ $ $ $ $ $ $ $ $ $ $ 65,000 48,000 30,000 24,000 157,000 220,000 42,000 21,000 14,000 15,000 18,000 10,000 13,000 9,000 Using this cost information, prepare a cost of goods manufactured schedule for Mr. Williams.
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.
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