Building Teamwork Through Communication

Topics: Revenue, Income statement, Cost Pages: 3 (538 words) Published: March 5, 2013
Name: Ong sithawon
Chhay sokundaneth
Lov sonirata
1. Process costing is a costing method used where it is not possible to identity separate units of production or jobs, usually because of the continuous nature of the production processes involved. 2. Normal loss is the loss expected during a process. It is not given a cost 3. Abnormal loss Is the entre loss resulting when actual loss is greater than normal or expected loss, and it is given wst. 5Equivalent unit are national whole unit which represent incomplete work and which are used apportion cost between work in process and completed output. 6Abnormal gain is the resulting when actual loss is less than the normal or expected loss it is given a negative cost. II.

1) How much has raw material been used
a) Raw material inventory (Dec 31)1,100
b) Raw material inventory (Jan 1)1,010
c) Purchased of raw material 3,900
2) Calculate indirect production costs
d) indirect labor costs2,900
e) other selling and administrative400
f) Deprecation on factory building380
g) Rental for space for managing170
h) Rental for ware house space to310
i) Insurance on factory and360
j) Indirect material used 490
k) Depreciation on factory 210
l) Electricity for factory600
m) Electricity for sale and adult250
Total Indirect production6,070
3) Calculate cost of goods manufactured
Cost of manufactured =
(Direct production cost + Manufacture overhead) + (B. work – E. work) (7,900) + (2,900+ 490) + (810- 830)
Cost of goods manufactured = $11270
4) Prepare income statement
Sales Revenues20,580
Cost of goods sold11,130
Gross profit9,450
Less Property taxes for factor240
Less Income tax expense510
Net income8,700
Question 2
Apportionment of overhead costs using Reciprocal Method
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