AVC Company has finished 200 units with a total standard direct materials costs of $11,000 and total standard conversion costs of $3,500. Under a just-in-time costing system, journal entry that is recorded for the 200 completed units moved to Finished Goods Inventory is OA. Finished Goods Inventory Raw and In-Process Inventory Conversion Costs OB. Finished Goods Inventory Conversion Costs Accumulated Deprecation OC. Finished Goods Inventory Cash O D. Conversion Costs Accounts Payable Accumulated Depreciation 14,500 14,500 14,500 14,500 11,000 3,500 11,000 3,500 14,500 11,000 3,500
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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