Prepare T-accounts to show the flow of costs during the period.
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.
I NEED HELP WITH REQUIRED 2 PLEASE
The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses
- Purchased $75,180 in materials on account.
- Issued $2,100 in supplies from the materials inventory to the production department.
- Paid for the materials purchased in transaction (1).
- Issued $35,700 in direct materials to the production department.
- Incurred wage costs of $58,800, which were debited to Payroll, a temporary account. Of this amount, $18,900 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $39,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
- Recognized $29,400 in fringe benefit costs, incurred as a result of the wages paid in (5). This $29,400 was debited to Payroll and credited to
Fringe Benefits Payable - Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs.
- Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $45,360.
- Applied
overhead on the basis of 175 percent of direct labor costs. - Recognized depreciation of $24,150 on manufacturing property, plant, and equipment.
Required:
1 Prepare
2 The balances that appeared in the accounts of Apex Manufacturing are shown as follows.
| Beginning | Ending | |||||
| Materials Inventory | $ | 77,805 | — | |||
| Work-in-Process Inventory | 17,325 | — | ||||
| Finished Goods Inventory | 87,150 | $ | 69,720 | |||
| Cost of Goods Sold | — | 138,285 | ||||
Prepare T-accounts to show the flow of costs during the period.
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