8. The following data for September were taken from the cost records of the Mixing Department of a company which uses the average costing method: WIP August 31 (all materials; 50% converted) – 1,000 units Put into process during the month – 10,000 units WIP September 30 (all materials; 40% unconverted) – 1,400 units Costs: WIP August 31 (materials, Php 24,000; labor, Php 15,000; factory overhead, Php 7,600) Put into process during the month (materials, Php 251,000; labor, Php 198,300; factory overhead, Php 194,000) a. Compute the total cost of the units completed and transferred to the next department. b. Compute the total cost of the work in process on September 30.
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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