Carbata Company manufactures low-cost, basic tool kits in bulk. Below is the latest information for last month's production. Materials Cost 5,550 $ 60% 2 3 4 5 Inventory on September 1 6 % Complete 7 Units Started 8 Costs Added in September 9 Inventory on September 30 10 % Complete 11 12 Required: 13 Use the information above to complete a Process Costing Production Report under the Weighed Average Assumption. 14 15 Step 1: Account for all Units 16 17 18 Beginning Inventory 19 Units Started 20 Units to Account for 21 22 Ending Inventory 23 Units Completed and Transferred 24 Units to Account for 25 26 Step 2: Compute the Equivalent Units of Production 27 28 29 Units Completed and Transferred 30 % Complete 31 Equivalent Units 32 33 Ending Inventory 34 % Complete 35 Equivalent Units 36 37 Total Equivalent Units of Production Units 950 $ 3,150 1,200 Units 950 3,150 4,100 1,200 2,900 4,100 Materials 100% 1,200 80% 960 $ 28,940 $ 80% Conversion 100% Conversion Cost 2,354 1,200 60% 720 30% 8,156 60%
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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