: Costing of units transferred out; abnormsl loss. Durlng February, the Assembly department of Carola Company received 240,000 units from cutting departme nt at a unit cost of Rs. 552 24 Costs added In the Assemb ly department were: materlals, Rs 6,497,400: labor, Rs 15,865,200; Factory overhead, Rs 8,814.000 There was no beginning inventory. Of the 240.000 units received, 200,000 transferred out; 36,000 unlts were In process at the end of the month (the degree of completion of the work In process as to costs originatiRg In Âssembly Department was: 50% of the units were 35% complete: 30% were 45% complete; and the balance were 25% com plet e); 4,000 lost units were 75% complete as to inater lals and converslOn costs. The entire loss is considered abnormal and is to be charged io factory overhead.
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.
: Costing of units transferred out; abnormsl loss. Durlng February, the Assembly department of Carola Company received 240,000 units from cutting departme nt at a unit cost of Rs. 552 24 Costs added In the Assemb ly department were: materlals, Rs 6,497,400: labor, Rs 15,865,200; Factory
Round to four decimal places.
Required: Cost of Production Reporl.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
