15. Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows: Beginning work in process 10,000 units Units started 20,000 units Units completed 25,000 units Beginning work-in-process direct materials $ 6,000 Beginning work-in-process conversion $ 2,600 Direct materials added during month $30,000 Direct manufacturing labor during month $12,000 Factory overhead $ 5,000 Beginning work in process was half converted as to labor and overhead. Direct materials are added at the beginning of the process. All conversion costs are incurred evenly throughout the process. Ending work in process was 60% complete. Prepare a production cost worksheet using the weighted-average method. Include any necessary supporting schedules.
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.
15. Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows:
|
Beginning work in process |
10,000 units |
|
Units started |
20,000 units |
|
Units completed |
25,000 units |
|
|
|
|
Beginning work-in-process direct materials |
$ 6,000 |
|
Beginning work-in-process conversion |
$ 2,600 |
|
Direct materials added during month |
$30,000 |
|
Direct manufacturing labor during month |
$12,000 |
|
Factory overhead |
$ 5,000 |
Beginning work in process was half converted as to labor and overhead. Direct materials are added at the beginning of the process. All conversion costs are incurred evenly throughout the process. Ending work in process was 60% complete.
Prepare a production cost worksheet using the weighted-average method. Include any necessary supporting schedules.
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