Assume the following information for a company with two production departments. The first department is Milling. Milling Department Beginning work-in-process inventory Units 200 Percent Complete Materials 40% Conversion 30% Units started into production during March units 6,200 Units completed during the period and transferred out units 5800
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.
Assume the following information for a company with two production departments. The first department is Milling.
Milling Department
Beginning work-in-process inventory
Units 200
Percent Complete
Materials 40% Conversion 30%
Units started into production during March units 6,200
Units completed during the period and transferred out units 5800
Ending work-in-process inventory Units 400
Materials 30%
Conversion 70%
Milling Department cost data:
Cost of beginning work-in-process inventory
Materials $20,000
Conversion $15,000
Costs added during the period
Materials $260,000
Conversion $335,000
Total cost
Materials $280,000
Conversion $350,000
1 Using the weighted-
A $597,938
B $32,062
C $8,428
D $184,949
E None of the above.
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