The management of K31Corporation has asked your help as an intern in preparing some key reports for June. The beginning balance in the raw materials inventory account was P20,000. During the month, the company made raw materials purchases amounting to P69,000. At the end of the month, the balance in the raw materials inventory account was P32,000. Direct labor cost was P24,000 and manufacturing overhead was P71,000. The beginning balance in the work in process account was P24,000 and the ending balance was P19,000. The beginning balance in the finished goods account was P53,000 and the ending balance was P58,000. Selling expense was P20,000 and administrative expense was P35,000. Required: 21. Calculate the total prime cost for June. = 22. The conversion cost for June was? = 23. How much is the total cost of inventory to be presented in the financial position of the Company? =
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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