7. Using the following terms, complete the production cost report shown below: Ending work in process Total costs to account for Cost per equivalent unit Units started into production Manufacturing Overhead Beginning work in process Total units accounted for Raw Materials Inventory Transferred in costs Incurred during the period Completed and transferred out Total costs accounted for Finished Goods Inventory Equivalent units Total units to account for Materials are added at the beginning of the production process and ending work in process inventory is 80% complete with regard to conversion costs. Use the information provided to complete a production cost report using the weighted-average method. Cost to Account For Beginning inventory: materials $ 25,000 Beginning inventory: conversion 30,500 Direct materials 2,000 Direct labor 45,000 Applied overhead 11,840 Transferred-in materials 12,015 Transferred-in conversion 33,500 _______ Total costs to account for $159,855 Units to Account For Beginning work in process 4,000 Units started into production 9,500 Transferred out 9,600 PLEASE NOTE: For percent, use whole numbers and "%" (i.e. 25%). For units, use commas as needed (i.e. 1,234). Costs per unit are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). All other dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Units to Account For: Units ? ? ? ? ? ? Completion Percent: ? ? X Units Accounted For: Material Units Conversion Units Total Units ? ? ? ? ? ? ? ? ? ? ? ? Costs to Account For: Materials Conversion Total ? ? ? ? Transferred in Costs ? ? ? ? ? ? ? ? ? ? ? ? ? ? X ? ? ? ? Costs Accounted For: Materials Conversion Total ? ? ? ? ? ? ? ? ? ? ? ?
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.
7. Using the following terms, complete the production cost report shown below:
|
Ending work in |
Total costs to account for | Cost per equivalent unit |
| Units started into production |
Manufacturing Overhead |
Beginning work in process |
|
Total units accounted for |
Raw Materials Inventory |
Transferred in costs |
| Incurred during the period | Completed and transferred out |
Total costs accounted for |
| Finished Goods Inventory |
Equivalent units |
Total units to account for |
Materials are added at the beginning of the production process and ending work in process inventory is 80% complete with regard to conversion costs. Use the information provided to complete a production cost report using the weighted-average method.
|
Cost to Account For Beginning inventory: materials $ 25,000 Beginning inventory: conversion 30,500 Direct materials 2,000 Direct labor 45,000 Applied overhead 11,840 Transferred-in materials 12,015 Transferred-in conversion 33,500 _______ Total costs to account for $159,855 |
|
Units to Account For Beginning work in process 4,000 Units started into production 9,500 Transferred out 9,600 |
PLEASE NOTE: For percent, use whole numbers and "%" (i.e. 25%). For units, use commas as needed (i.e. 1,234). Costs per unit are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). All other dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
| Units to Account For: | Units |
| ? | ? |
| ? | ? |
| ? | ? |
| Completion Percent: | ? | ? | X |
| Units Accounted For: | Material Units | Conversion Units | Total Units |
| ? | ? | ? | ? |
| ? | ? | ? | ? |
| ? | ? | ? | ? |
| Costs to Account For: | Materials | Conversion | Total |
| ? | ? | ? | ? |
| Transferred in Costs | ? | ? | ? |
| ? | ? | ? | ? |
| ? | ? | ? | ? |
| ? | ? | ? | X |
| ? | ? | ? | ? |
| Costs Accounted For: | Materials | Conversion | Total |
| ? | ? | ? | ? |
| ? | ? | ? | ? |
| ? | ? | ? | ? |
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