Costs incurred: Materials Direct Labor Overhead Total Materials are added at: Started/Transferred In In process, beginning Completed In Process, end Process 1 33,750 30 200 24,160 88,110 100% at the beginning 15,000 units 1,000 units 50% complete. Cost: Materials P2,250, Labor P1,000, OH P800. 15,200 units 800 units 50% complete Process 2 Process 3 30,000 27,729 22,725 24,648 18,180 19,718 70,905 72,095 50% at beginning, 50% 40% at beginning, 30% at at 60% complete 50% complete, and remaining 30% at 80% complete. 15,200 units 500 units 70% complete. Cost from preceding department P2,925; Materials P1,000; Labor P 525, OH P 420. 15,300 Units 5,700 units 250 units 40% complete, 250 units 70% complete. Cost from preceding pepartment P5,275, Materials P 495; Labor P440, OH P 352. 15,400 Units 400 units 50% complete 400 units at 70% complete
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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