Barcelona Beach Products reports the following data for the first department in its production process: Units in process at beginning of period (all materials; 3/4 labor and factory overhead) Units started in process 5,000 35,000 33,000 5,000 2,000 Units transferred out Units still in process (all materials; 1/2 labor and factory overhead) Units completed but not yet transferred to Finished Goods Related data were: Added During the Period P 304,000 407,100 407,750 P 1,118,850 Work in Process at Beginning of Period P100,000 125,400 173.500 P398,900 Materials Labor Factory overhead Total Required: Using the average costing method: (please show the ave method solution) a. Compute the unit cost for: i. Materials ii. Labor iii. Factory overhead. b. Determine the cost of the work in process ending inventory.
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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