Carla Vista Company reported the following information for the month of April Units Work in Process Beginning inventory, April 1 8,300 Added to Production 40,800 Completed and trasnferred out ? Adding inventory, April 30 6,500 Ending inventory was 100% complete with respect to materials and 84% complete with respect to conversion costs. Company also reported the following cost information in April: Costs Costs Materials Conversion Work in Process Beginning Inventory, April 1 10,251 28,195 Added to Production 68,800 128,000 What cost would be assigned to the units transferred out of Work in Process Inventory?
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.
Carla Vista Company reported the following information for the month of April
| Units | |
| Work in Process | |
| Beginning inventory, April 1 | 8,300 |
| Added to Production | 40,800 |
| Completed and trasnferred out | ? |
| Adding inventory, April 30 | 6,500 |
Ending inventory was 100% complete with respect to materials and 84% complete with respect to conversion costs. Company also reported the following cost information in April:
| Costs | Costs | |
| Materials | Conversion | |
| Work in Process | ||
| Beginning Inventory, April 1 | 10,251 | 28,195 |
| Added to Production | 68,800 | 128,000 |
What cost would be assigned to the units transferred out of Work in Process Inventory?
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