CNASIA Bhd creates a product that passes through two departments prior to completion: the mixing department and the packaging department. During the month of June, the following information is known about work in the first department, the Mixing Department. The weighted-average approach is used by the company. Units Percent Completed Materials Conversion Work in process, beginning 70,000 70% 40% Started into production 460,000 Completed and transferred out 450,000 Work in process, ending 80,000 75% 25% Work in process, beginning RM36,550
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.
CNASIA Bhd creates a product that passes through two departments prior to completion: the mixing department and the packaging department. During the month of June, the following information is known about work in the first department, the Mixing Department. The weighted-average approach is used by the company.
| Units | Percent Completed | ||
| Materials | Conversion | ||
| Work in process, beginning | 70,000 | 70% | 40% |
| Started into production | 460,000 | ||
| Completed and transferred out | 450,000 | ||
| Work in process, ending | 80,000 | 75% | 25% |
| Work in process, beginning | RM36,550 | RM13,500 | |
| Cost added during the year | RM391,850 | RM287,300 |
Determine the total cost of ending work in process inventory and the total cost of unit transferred to the packaging department.
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