Closet Company had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $14,000. Work in Process Inventory Beginning balance @ 12/1: 240 units, 10% completed $ 17,000 Completed 960 units and transferred them to finished goods inventory $ 165,262 Direct materials 65,000 Direct labor 41,000 Overhead Property taxes 7,000 Depreciation 38,000 Utilities 22,000 Indirect labor 5,000 Ending balance @ 12/31: 360 units, 20% completed $ 29,738 Total equivalent units for conversion under the FIFO method are calculated to be:
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.
Closet Company had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $14,000.
| Work in Process Inventory | |||
| Beginning balance @ 12/1: 240 units, 10% completed | $ 17,000 | Completed 960 units and transferred them to finished goods inventory | $ 165,262 |
|---|---|---|---|
| Direct materials | 65,000 | ||
| Direct labor | 41,000 | ||
| 7,000 | |||
| 38,000 | |||
| Utilities | 22,000 | ||
| Indirect labor | 5,000 | ||
| Ending balance @ 12/31: 360 units, 20% completed | $ 29,738 |
Total equivalent units for conversion under the FIFO method are calculated to be:
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