3. The Welding Department of Batista Manufacturing Company has the following production and manufacturing cost data for February 2010.All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process Materials 15,000 units $18,000 1/10 complete Conversion costs 14,175 $32,175 Units transferred out 49,000 Materials 180,000 Units started 60,000 Labor 32,780 Ending work in process 26,000 units Overhead 61,445 1/5 complete Instructions Prepare a production cost report for the Welding Department for the month of February
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.
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