Carla Vista Corporation incurred the following costs while manufacturing its product: Materials used in product $121,200 Advertising expense $45,050 Depreciation on plant 61,600 Property taxes on plant 19,200 Property taxes on warehouse 7,710 Delivery expense 22,000 Labour costs of assembly-line workers 111,000 Sales commissions 35,100 Factory supplies used 26,000 Salaries paid to sales clerks 50,400 Work in process inventory was $10,900 at January 1 and $14,800 at December 31. Finished goods inventory was $60,500 at January 1 and $50,800 at December 31. (a)
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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Materials used in product
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$121,200
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Advertising expense
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$45,050
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|---|---|---|---|---|---|---|---|
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Depreciation on plant
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61,600
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Property taxes on plant
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19,200
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Property taxes on warehouse
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7,710
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Delivery expense
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22,000
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Labour costs of assembly-line workers
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111,000
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Sales commissions
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35,100
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||||
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Factory supplies used
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26,000
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Salaries paid to sales clerks
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50,400
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Work in process inventory was $10,900 at January 1 and $14,800 at December 31. Finished goods inventory was $60,500 at January 1 and $50,800 at December 31.
(a)
| Cost of goods manufactured | $enter the cost of goods manufactured in dollars |
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