Pharoah Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on factory Property taxes on store Labor costs of assembly-line workers Factory supplies used i Advertising expense Property taxes on factory Delivery expense Sales commissions Salaries paid to sales clerks $140,000 67,200 8,400 123,200 25,760 50,400 21.280 23,520 39,200 56,000 Work in process inventory was $30,240 at January 1 and $17.360 at December 31. Finished goods inventory was $72,800 at January 1 and $56,640 at December 31. (Assume all raw materials used were direct materials)
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.
A-Compute cost of goods manufactured.
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