Carlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 11,500 units during November. The following production activity in both units and costs refers to the Assembly department's November activities. Assembly Department Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Cost of beginning work in process i Direct materials Conversion Costs added this month Direct materials Conversion Unite 3,000 11,500 10,000 4,500 Percent Complete for Percent Direct Complete for Materials. Conversion 60% 40% $ 1,340 1,025 17,700 18,270 80% $ 2,365 35,970 30% Assign costs to the Assembly department's output-specifically, the units transferred out to the Painting department and the units that remain in process in the Assembly department at month-end. Use the weighted average method. Note: 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.
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