Data Beginning work in process inventory: 5. Units in process 200 6. Completion with respect to materials 50 % 7. Completion with respect to conversion 40 % Costs in the beginning work in process inventory: 6. Materials cost 24 2,590 10 Conversion cost 6,184 16,500 24 11 Units started into production during the period 12 Costs added to production during the period: 13 Materials cost $ 415,325 $ 1.266,500 14 Conversion cost 15 Ending work in process inventory: 16 Units in process 100 Completion with respect to materials Completion with respect to conversion 17 50 % 18 80 % 2. 3. 4, C.
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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