Barney makes a single product in two Departments. The production data for Dept. 2 for Aug 2020 follows: Production Cost Last Month This Month Transferred in 40,750 222,750 Materials 9,500 168,750 Conversion 4,850 202,500 Quantities In Process beginning (40% done) 10,000 Received from Dept. 1 75,000 Completed and Transferred 62,500 In Process end (60% done) 15,000 31. Under FIFO, what is the cost of goods completed? a. 488,125 b. 535,100 c. 537,500 d. 528,700
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.
Barney makes a single product in two Departments. The production data for Dept. 2 for Aug 2020 follows:
Production Cost Last Month This Month
Transferred in 40,750 222,750
Materials 9,500 168,750
Conversion 4,850 202,500
Quantities
In Process beginning (40% done) 10,000
Received from Dept. 1 75,000
Completed and Transferred 62,500
In Process end (60% done) 15,000
31. Under FIFO, what is the cost of goods completed?
a. 488,125 b. 535,100 c. 537,500 d. 528,700
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