1. Beta Manufacturing

Scenario: Cost Accounting for Production

Data: Beta Manufacturing uses cost accounting to track production costs. During the year, the following information is available:

• Direct materials used: $60,000
• Direct labor incurred: $40,000
• Factory overhead costs: $30,000
• Beginning work in process inventory: $20,000
• Ending work in process inventory: $25,000

Requirements:

1. Calculate Beta Manufacturing's total manufacturing costs.
2. Determine Beta Manufacturing's cost of goods manufactured.
3. Discuss the role of cost accounting in analyzing production costs.
4. Analyze the impact of beginning and ending work in process inventory on Beta Manufacturing's financial statements.
5. Evaluate Beta Manufacturing's cost efficiency based on the cost of goods manufactured.
6. Recommend cost control measures for Beta Manufacturing.