Product Costing System Author Institution Affiliated Product Costing System A product costing system is a method that is applied in a variety of industries to help determine the best price for a product. In a manufacturing setting product costing involves identifying all costs that can be directly attributed to a final product though not necessarily visible. Such costs could include; raw material costs labor input in the manufacturing process and any other manufacturing overhead costs. The total costs of a product are identified and valued; other administrative costs and expenses are then added to determine the total cost of the product. A profit margin is then added to determine the selling price of the product. This product costing is important since it enables a company to determine an optimal and competitive selling price. Also the company is able to understand all the costs involved and hence can streamline the affairs in the company. APPENDIX 1 SCHEDULE OF COSTS OF GOODS MANUFACTURED Raw materials Opening material balance 12 000 Add material purchases 180 000 Materials available 192 000 Less ending material balance (12 000) Total materials 180 000 180 000 Direct labour costs 182 000 Manufacturing overheads Indirect labour 118 000 Depreciation Factory building 8 000 Factory equipment 16 000 Insurance factory 14 000 Repairs and maintenance - factory 8 000 Land tax - factory 4 500 Total manufacturing overheads 168 500 168 500 Total manufacturing costs 530 500 Add opening work in progress 4 500 535 000 Less closing work in progress (33 500) Total cost of goods manufactured 501 500 APPENDIX 2 SCHEDULE OF COST OF GOODS SOLD Opening finished goods balance 11 000 Add cost of goods manufactured 501 500 512 500 Less closing finished goods balance (16 000) Total cost of goods sold 496 500 [...]
solve the questions and generate a report for each question and do it in order 1)Applied OH 2)T Accounts 3)Cost Drivers What else is required in the assignment should be done in a prosessional way Find assignment attached.