Cederholm Company has gathered the following information. Units in beginning work in process -0- Units started into production 36000 Units in ending work in process
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.
E3-5 In Kagan Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2011 are as follows.E3-9
Cederholm Company has gathered the following
information.
Units
in beginning work in process
-0-
Units started into production
36000
Units
in ending work in process
6000
Percent
complete in ending work in
Conversion costs
40%
Materials
100%
Costs incurred:
Direct materials
72,000
Direct labor
81,000
Overhead
97,200
Compute
equivalent units of production for materials and for conversion costs.
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