5 6 7 18 19 20 21 22 23 Work in process, beginning Units completed during the months Work in process, ending 24 25 26 Costs to account for: 27 28 Beginning work in process Materials added Conversion costs incurred Total costs to be accounted for 29 Beg. Work in process Started & Completed Ending Work in process Total $ $ Whole Units FORMULA 2 FORMULA 3 FORMULA 3 Units 60,000 210,000 30,000 Total 94,800 151,200 600,300 FORMULA 1 Direct Mat. % Added During the Month FORMULA 5 FORMULA 6 FORMULA 7 Percent Conversion 40% 70% Direct Mat. Equiv. Units FORMULA 8 FORMULA 9 FORMULA 10 Conversion% Added During the Month FORMULA 12 FORMULA 13 FORMULA 14 HINT: Formulas in RED will be in units Forumlas in BLUE will percentages Formulas in GREEN will be in dollars To find started and completed: Completed units - beginning inventory Started during the month - ending inventory Cost assignment Conversion Equiv. Units Beginning Inventory FORMULA 19 FORMULA 15 FORMULA 16 FORMULA 20 FORMULA 17 FORMULA 21 $0 Direct Materials Conversion FORMULA 22 FORMULA 25 FORMULA 23 FORMULA 26 FORMULA 24 FORMULA 27 $0 $0 Total SO SO SO SO

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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.