p9-2 The following data were gathered from the books of Jersey Company during April 2015: Units: In process, beginning (30% completed) Finished and transferred Finished and on hand In Process, end (1/3 completed) 20,000 50,000 10,000 30,000 Costs: In process, beginning Cost added this month: P30,000 Materials 70,000 Labor 40,000 Overhead 18,000 Required: Cost of production report P9-3 The following information was provided by Bronx Company for the month of June 2015: Units: In process, beginning (1/4 completed) Started during the month Finished & transferred Finished & on hand 80,000 20,000 30,000 20,000 ? In process, end (3/4 completed) Costs: P120,000 In process, beginning Cost added this month: 110,000 30,000 28,750 Materials Labor Overhead Required: Cost of production report 239 CHAPTER 9 Process Costing Using FIFO Method
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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