Assembly Finishing Beginning work-in-process units 20,000 24,000 Units started this period 40,000 54,000 Units transferred this period 50,000 ? Ending work-in-process units 8,000 20,000 Material costs added $44,000 $28,000 Direct manufacturing labor $16,000 $24,000 Required: Prepare the production cost reports using weighted-average for the
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.
Zeather Instruments assembles products from component parts. It has two
departments that process all products. During January, the beginning work in
process in the assembly department was half complete as to conversion and
complete as to direct materials. The beginning inventory included $12,000 for materials and $4,000 for conversion costs.
Beginning work in process in the finishing department was 75% complete as to conversion and ending work in process was 25% converted. Direct materials are added at the end of the process. Beginning inventories included $16,000 for transferred-in costs and $10,000 for direct manufacturing labor costs. Overhead in this department is equal to direct manufacturing labor costs. Additional information about the two departments follows:
| Assembly | Finishing | |
| Beginning work-in-process units | 20,000 | 24,000 |
| Units started this period | 40,000 | 54,000 |
| Units transferred this period | 50,000 | ? |
| Ending work-in-process units | 8,000 | 20,000 |
| Material costs added | $44,000 | $28,000 |
| Direct manufacturing labor | $16,000 | $24,000 |
Required: Prepare the production cost reports using weighted-average for the
assembly department and FIFO for the finishing department.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
