Concord Corporation was starting a new style of jacket and was monitoring the costs of its first production run of these items during the month. The costs and transactions associated with this jacket were as follows. 1. 2. 3. 4. 5. 6. (a) Purchased fabric on account at a cost of $390. Transferred $310 of fabric into production. Accrued DL cost of $210 associated with 10 DL hours. Recorded actual MOH costs of $185 (consisting of accrued liabilities of $110 and factory-related depreciation of $75). Applied MOH costs using a budgeted MOH rate of $13 per DL hour. Recognized cost of goods completed of $460. Assuming there were no beginning balances in any of the inventory accounts at Concord, show how the above transactions would be reflected in the following select accounts: DM Inventory, WIP Inventory, FG Inventory, and MOH Control.
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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