ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Date Credit Item Debit Debit Credit Mar. 1 Bal., 6,600 units, 4/5 completed 13,992 31 Direct materials, 118,800 units 190,080 204,072 31 Direct labor 256,972 52,900 31 Factory overhead 29,756 286,728 31 Goods finished, 120,300 units 276,426 10,302 31 Bal. ? units, 3/5 completed 10,302
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.
Costs per Equivalent Unit
The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.
Look at images. for the chart
| Whole units | direct materials | conversion | |
| inventory march 1 | 6600 | 0 | 1320 |
| started and completed 120,300-6,600 | 113700 | 113700 | 113700 |
| transferred to finish goods | 120300 | 113700 | 115020 |
| inventory in process | 5100 | 5100 | 3060 |
| total | 125400 | 118800 | 1188080 |
6,600 units(1-.80%)=1320
6,600 + 118,800-120,300= 5100(60%)= 3060
Help solve for: Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.
3. Cost of the beginning work in process completed during March. $____
4. Cost of units started and completed during March. $____
5. Cost of the ending work in process. $_____
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