Data obtained from Antanian Manufacturing Inc. for July 2020 are as follows: Assembly Department Beginning WIP - 100% RM, 60% CC 2.000 unit Ending WIP - 90% RM, 25% CC 1.400 units Unit put in process 6.000 units Lost units (end of process) 100 units Spoiled units (abnormal) 200 units Cost of Beginning WIP: - RM $ 450,000 - CC 550,000 Current Manufacturing Costs: - RM $ 750,000 - CC 1,150,000 Required: Prepare cost of production (COGM) report for Assembly Department by using weighted average method of process costing!
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.
Data obtained from Antanian Manufacturing Inc. for July 2020 are as follows:
Assembly Department
Beginning WIP
- 100% RM, 60% CC 2.000 unit
Ending WIP
- 90% RM, 25% CC 1.400 units
Unit put in process 6.000 units
Lost units (end of process) 100 units
Spoiled units (abnormal) 200 units
Cost of Beginning WIP:
- RM $ 450,000
- CC 550,000
Current
- RM $ 750,000
- CC 1,150,000
Required:
Prepare cost of production (COGM) report for Assembly Department by using weighted average
method of
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