Complete the missing amounts in the following production report. Materials are added at the beginning of the process; conversion costs are incurred evenly; the ending inventory is 60% complete. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). Gannon CompanyProduction Cost Report―FINISHING DEPARTMENTMonth Ended September 30, 2021 Equivalent Units UNITS Whole Units Transferred In Direct Material Conversion Costs Units to account for: Beginning work-in-process 960 Started in production 1490 Total units to account for Units accounted for: Completed and transferred out n/a Ending work-in-process 960 n/a Total units accounted for n/a Gannon CompanyProduction Cost Report―FINISHING DEPARTMENTMonth Ended September 30, 2021 COSTS Transferred In Direct Materials Conversion Costs Total Costs Costs to account for: Beginning work-in-process n/a $1,770 $3,270 Costs added during period n/a 14,560 3,670 Total costs to account for n/a 5,170 $21,500 Divided by: Total EUP n/a Cost per equivalent unit n/a Costs accounted for: Completed and transferred out n/a Ending work-in-process n/a Total costs accounted for n/a $21,507
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.
(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
Gannon CompanyProduction Cost Report―FINISHING DEPARTMENTMonth Ended September 30, 2021
| Equivalent Units | ||||
|---|---|---|---|---|
| UNITS | Whole Units | Transferred In | Direct Material | Conversion Costs |
| Units to account for: | ||||
| Beginning work-in-process | 960 | |||
| Started in production | 1490 | |||
| Total units to account for | ||||
| Units accounted for: | ||||
| Completed and transferred out | n/a | |||
| Ending work-in-process | 960 | n/a | ||
| Total units accounted for | n/a |
Gannon CompanyProduction Cost Report―FINISHING DEPARTMENTMonth Ended September 30, 2021
| COSTS | Transferred In | Direct Materials | Conversion Costs | Total Costs |
|---|---|---|---|---|
| Costs to account for: | ||||
| Beginning work-in-process | n/a | $1,770 | $3,270 | |
| Costs added during period | n/a | 14,560 | 3,670 | |
| Total costs to account for | n/a | 5,170 | $21,500 | |
| Divided by: Total EUP | n/a | |||
| Cost per equivalent unit | n/a | |||
| Costs accounted for: | ||||
| Completed and transferred out | n/a | |||
| Ending work-in-process | n/a | |||
| Total costs accounted for | n/a | $21,507 |
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