Beginning units were 0. The company started 50,000 units in May. 40,000 were transferred out. For the ending work in process, the materials were added at the start of the process and ending units were 25% complete. The incured costs were direct materials $140,000, direct labor $20,000 and overhead $48,000. Completed units were transferred to the package dept. Complete the Cost of Production report and record the entry to transfer out the completed units.
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.
Beginning units were 0. The company started 50,000 units in May. 40,000 were transferred out.
For the ending work in process, the materials were added at the start of the process and ending units were 25% complete.
The incured costs were direct materials $140,000, direct labor $20,000 and
Completed units were transferred to the package dept. Complete the Cost of Production report and
record the entry to transfer out the completed units.
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