Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows: Inventories March 1 March 31 Materials $223,750 $194,660 Work in process 147,680 128,480 Finished goods 116,350 130,420 Direct labor $402,750 Materials purchased during March 429,600 Factory overhead incurred during March: Indirect labor 42,960 Machinery depreciation 25,960 Heat, light, and power 8,950 Supplies 7,160 Property taxes 6,270 Miscellaneous costs 11,640 a. Prepare a cost of goods manufactured statement for March. Johnstone Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended March 31 Work in process inventory, March 1 $ Direct materials: Machinery depreciation $ Purchases Cost of materials available for use $ Work in process inventory, March 31 Cost of direct materials used $ Direct labor Factory overhead: Indirect labor $ Machinery depreciation Heat, light, and power Supplies Property taxes Miscellaneous costs Total factory overhead Total manufacturing costs incurred during March Total manufacturing costs $ Work in process inventory, March 31 Cost of goods manufactured $
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.
Statement of Cost of Goods Manufactured for a Manufacturing Company
Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows:
| Inventories | March 1 | March 31 | ||
| Materials | $223,750 | $194,660 | ||
| Work in process | 147,680 | 128,480 | ||
| Finished goods | 116,350 | 130,420 |
| Direct labor | $402,750 | |
| Materials purchased during March | 429,600 | |
| Factory |
||
| Indirect labor | 42,960 | |
| Machinery |
25,960 | |
| Heat, light, and power | 8,950 | |
| Supplies | 7,160 | |
| Property taxes | 6,270 | |
| Miscellaneous costs | 11,640 |
a. Prepare a cost of goods manufactured statement for March.
| Johnstone Manufacturing Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Month Ended March 31 | |||
| Work in process inventory, March 1 | $ | ||
| Direct materials: | |||
| Machinery depreciation | $ | ||
| Purchases | |||
| Cost of materials available for use | $ | ||
| Work in process inventory, March 31 | |||
| Cost of direct materials used | $ | ||
| Direct labor | |||
| Factory overhead: | |||
| Indirect labor | $ | ||
| Machinery depreciation | |||
| Heat, light, and power | |||
| Supplies | |||
| Property taxes | |||
| Miscellaneous costs | |||
| Total factory overhead | |||
| Total |
|||
| Total manufacturing costs | $ | ||
| Work in process inventory, March 31 | |||
| Cost of goods manufactured | $ |
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