A product passes through two process A and B in the manufacturing process. The information related to the input and output for each process is given below: 9,500 units were issued in Process A at a cost of $10 per unit. Process A Process B Material added $29,000 $27,420 Direct Labour $13,000 $11,820 Overheads $9,775 $9,000 Normal loss 5% 4% Normal loss scrap value $5 per unit $6 per unit Output 9000 units 8700 units From the information given above show the recordings in the: Process A account, show all working Process B account, show all working
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 product passes through two process A and B in the manufacturing process. The information related to the input and output for each process is given below:
9,500 units were issued in Process A at a cost of $10 per unit.
Process A Process B
Material added $29,000 $27,420
Direct Labour $13,000 $11,820
Normal loss 5% 4%
Normal loss scrap value $5 per unit $6 per unit
Output 9000 units 8700 units
From the information given above show the recordings in the:
- Process A account, show all working
- Process B account, show all working
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