Brooks Corporation uses the weighted-average method for process costing and has two sequential processing departments: Assembly then Shaping. The Shaping Department reports the following information. Beginning WIP inventory Transferred-in costs in beginning WIP inventory Direct materials cost in beginning WIP inventory Conversion costs in beginning WIP inventory Units transferred-in Transferred-in costs Units completed Costs added: direct materials 6,000 units $108,000 $26,500 $20,750 55,000 units $530,000 50,000 $163,500 Costs added: conversion costs $225,300 Ending WIP inventory 11,000 units (50% complete for materials and 40% complete for conversion) At Brooks Corporation the total cost of units in ending WIP inventory-Shaping would be closest to $110,433.00 $38,730.00 $153,779.00 $202,460.00
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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