Adam Company uses the weighted- average method in its process costing system. The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process): Work in process inventory, Sept. 1 Transferred in during the month Work in process inventory, Sept. 30 Beginning work in process inventory Cost added during the month Number of Units Labour and Overhead (Percentage Complete) 60,000 105,000 40,000 Multiple Choice $106,000. $429,000. $498,500. $604,500. Transferred In Materials Labour & Overhead $60,000 $30,000 $115,500 $63,000 $16,000 $320,000 15% 20% The "Cost to be accounted for" section of the production report for the month will show a total amount equal to?
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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