Blossom Desserts specializes in the production of sweet plant-based bakery items. The company's top seller for the past few year been its cherry cheesecake made with a flourless crust and organic fruit toppings. Blossom is currently considered a boutique operation, but is looking to increase production and to expand its offerings and customer base. In an effort to refine its spending efforts and advertising costs, the company will be compiling costing data on its cherry cheesecake. The following costing informat applies to the current year: Beginning Work-in-Progress (WIP) Inventory Costs Added During the Period Beginning Inventory Units Started this Year Ending Inventory The following production summary has also been compiled for this year's operations: Physical Units 800 O $161777.00 O $161857.00 $155049.00 64300 Crust $2100 $59799 1000 Cherry Toppings $1500 $26985 Crust Cherry Toppings 100% 100% 100% 95% Conversion Costs (CC) $2600 $71203 Conversion Costs 35% 91% If management decides to use the First-In, First-Out (FIFO) method, then how much cost will be assigned to the units completed a transferred out of the manufacturing process? (Do not round intermediate calculations.)
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.
D1.
Account
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
