Date Total Cost of Job at July 31 Job No. Started Finished Sold June 21 July 16 July 17 $ 3,400 2 June 29 July 21 July 26 13,700 July 3 July 7 August 11 August 13 6,000 July 29 August 1 4,400
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.
Accounting for job costs
Root Trailers’
Use the dates in the table to identify the status of each job. Compute the following balances for Root:
a. Work-in-Process Inventory at July 31
b.Finished Goods Inventory at July 31
c. Cost of Goods Sold for July
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