Summer Company makes a single product in two departments. The production data for Department B for 2019 follows: ow 000,0 T80 000,0S hl ensiT 000.09 MC Units In process, August 1 (40% completed) Received from Department 1 Completed and transferred O In process, August 31 (60% completed) 4,000 units gnil 30,000 units 25,000 units 6,000 units 2bo00 berlaini Costs 20te000,281 Received from Dept. 1 In process, May 1MDto Added during May a Mop 14,400 P 97,200 nst 67,500 81,000 C00.00 MO 3,800 1,940 000.0 hiba Materials Conversion costs Materials are added at the start of the process and losses normally occur during the early stages of the operation. gagnt oni moil sua berstesit eboo to Jecs 000.E 000.00d 32. Cost of goods manufactured using FIFO method a. Р 195,250 b. Р 193,040 000 EFS с. Р 211,040 d. P 218,440 000,0 000,20 9d 33. Cost of the ending work in process inventory using average costing 000,1T а. Р44,640 b. P 45,840 с. Р 46,362 d. P 46,800
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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