At the beginning of January, 3,000 tons of raw material A was taken into the kiln, which was empty, and 1,500 tons of product X was obtained from 2,600 tons of it. The burning process of the last 400 tons of the kiln continues as of the end of the month. This part is in the middle of the burning period. Direct raw material and material expense is 160.000TL, direct labor cost is 95.000TL and general production cost is 150.000TL. The degree of completion in terms of expenses is 50%. Calculate the cost of finished goods and DSYM.
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.
At the beginning of January, 3,000 tons of raw material A was taken into the kiln, which was empty, and 1,500 tons of product X was obtained from 2,600 tons of it. The burning process of the last 400 tons of the kiln continues as of the end of the month. This part is in the middle of the burning period. Direct raw material and material expense is 160.000TL, direct labor cost is 95.000TL and general production cost is 150.000TL. The degree of completion in terms of expenses is 50%. Calculate the cost of finished goods and DSYM.
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