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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.
Rondelle Supplies is a manufacturer of plastic parts that uses the weighted-average
Work in process (WIP) on April 1 had 75,000 units made up of the following:
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Amount |
Degree of Completion |
Prior department costs transferred in from the Molding Department Costs added by the Assembling Department |
$192,000 |
100% |
Direct materials |
$120,000 |
100% |
Direct labor |
$43,200 |
60% |
Manufacturing |
$27,600 |
50% |
Total |
$190,800 |
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Work in process, April 1 |
$382,000 |
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During April, 375,000 units were transferred in from the Molding Department at a cost of $960,000. The Assembling Department added the following costs.
Direct materials |
$576,000 |
Direct labor |
$216,000 |
Manufacturing overhead |
$113,400 |
Total costs added |
$905,400 |
Assembling finished 300,000 units and transferred them to the Packaging Department.
At April 30, 150,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows.
Direct materials |
90% |
Direct labor |
70% |
Manufacturing overhead |
35% |
Refer to your textbook (Chapter 8 pp. 337-343) and prepare a production cost report using the weighted-average method. Use the template below (fill in the cells indicated in green) and round “Cost per equivalent unit” to 2 digits.
Rondelle Supplies |
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Assembling Department |
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Production Cost Report – Weighted-Average |
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Physical Units |
Total Costs |
Prior Department Costs |
Materials |
Labor |
Manufacturing Overhead |
Flow of Production Units |
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Units to be accounted for: |
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Beginning WIP inventory |
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Units started this period |
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Total units to be accounted for |
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Units accounted for: |
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Units completed and transferred out: |
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From beginning inventory |
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Started and completed currently |
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Total transferred out |
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Units in ending WIP inventory |
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Total units accounted for |
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Costs to be accounted for: |
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Costs in beginning WIP inventory |
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Current period costs |
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Total costs to be accounted for |
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Costs per equivalent unit: |
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Prior department costs |
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Materials |
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Labor |
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Manufacturing overhead |
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Costs accounted for: |
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Costs assigned to units transferred out: |
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Prior department costs |
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Materials |
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Labor |
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Manufacturing overhead |
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Total costs of units transferred out |
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Costs assigned to ending WIP inventory: |
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Prior department costs |
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Materials |
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Labor |
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Manufacturing overhead |
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Total ending WIP inventory |
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Total costs accounted for |
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