Company A uses the weighted average method in its processing costing system. Manufacturing overhead (MOH) costs are applied to production on the basis of machine hours logged during the period. Total budgeted MOH for the period was $400,000 and total budgeted machine hours were 100,000. The following data concern the operations of the company's first processing department for June 2011. Beginning work-in-process Costs in beginning work-in- process Units started during June Costs added during June Manufacturing overhead Ending work-in-process 800 mops, 60% complete with respect to direct materials, 10% complete with respect to conversion $1,296 in materials and $2,416 in conversion costs 16,000 mops direct materials of $47,076, and direct labor of $216,213 actual machine hours logged during June were 70,250, actual MOH costs incurred during June were $280,000 300 mops, 100% completed with respect to direct materials, 70% complete with respect to conversion The cost to manufacture one unit during May 2011 was approximately
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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