A) Process Costing; The Apple Company makes orange juice. Each gallon of orange juice takes 1lbs of oranges and significant processing The oranges are added at the beginning of the process. At the end of January 2023, Apple had the following: \table[[Work in process:, 10,000 lbs of oranges (cost $3 per pound)], [, $60,000 of conversion costs (1/2 done)]] During February Apple purchased 100,000 lbs of oranges paying $300,000 and all of these were put into the production process During February Apple spent $244500 on conversion costs and produced 90000 gallons of apple juice The apples in the refinery 3 were done with respect to conversion REQUIRED: DETERMNE THE VALUE OF February work in process and finished goods. Rart 2: The Frankenstein
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.
![A) Process Costing; The Apple Company makes orange juice. Each gallon of orange juice takes 1lbs of oranges and significant processing The oranges are
added at the beginning of the process. At the end of January 2023, Apple had the following: \table[[Work in process:, 10, 000 lbs of oranges (cost $3 per
pound)], [,$60,000 of conversion costs (1/2 done)]] During February Apple purchased 100,000 lbs of oranges paying $300,000 and all of these were put
into the production process During February Apple spent $244500 on conversion costs and produced 90000 gallons of apple juice The apples in the refinery
3
were done with respect to conversion REQUIRED: DETERMNE THE VALUE OF February work in process and finished goods. Rart 2: The Frankenstein
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcfacf16c-5d28-4d8e-9edb-27f8c408c59d%2F3d851b01-0417-4799-b90c-bace86aa5665%2Fgzdfd6s_processed.jpeg&w=3840&q=75)
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