Baden Company has gathered the following information. Units in beginning work in process Units started into production 37,000 Units in ending work in process 7,000 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $73,000 Direct labor $61,100 Overhead $101.100
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.
In order to determine the Unit cost of material, the Direct material cost is required to be divided by the equivalent units of material
In order to determine the Units cost of conversion, the direct labor and overhead cost are required to be divided by the equivalent unit of the conversion cost
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
