Costs incurred: Materials Direct Labor Overhead Total Materials are added at Units Started/Transferred In In process, beginning Completed In Process, end Normal Loss Abnormal loss Quality Control Inspection Made Process 1 10,000 50,000 24,750 Beginning of the process. 9,800 14,850 89,600 Process 2 50% at the beginning of the process, and remaining 50% at 60% of the process. ? 45,355 22,195 12,545 80,095 ? 200 units 50% complete 300 units 50% complete None None None None At 60% stage of production. At 60% stage of production. Process 3 50% at the beginning of the process, another 20% at 70% of the process and the remaining 30% at 90% of the process. ? 42,679 19,31 11,775 73,765 ? 400 units at 80% complete None None At 60% stage of production.
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.
Step by step
Solved in 3 steps with 2 images
