Holdaway Co., a manufacturer, had inventories at the beginning and ends of its current year as follows: Beginning End Raw Materials 11,000 15,000 Work In Process 20,000 24,000 Finished Goods 12,50
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.
- Holdaway Co., a manufacturer, had inventories at the beginning and ends of its current year as follows:
|
|
Beginning |
End |
|
Raw Materials |
11,000 |
15,000 |
|
Work In Process |
20,000 |
24,000 |
|
Finished Goods |
12,500 |
9,000 |
During the year, the following costs and expenses were incurred:
Raw materials purchased 150,000
Direct labor cost 60,000
Indirect Factory Labor 30,000
Taxes and Depreciation
On Factory Building 10,000
Taxes and Depreciation on
sales Room and Office 7,500
Sales Salaries 20,000
Office Salaries 12,000
utilities (60% applicable to factory,
20% to sales room, and 20% to office) 25,000
Holdaway’s cost of goods sold for the year is
a.257,000 b. 260,500 c. 261,000 d. 269,500
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