Department A had 4,300 units in Work in Process that were 78% completed at the beginning of the period at a cost of $7,400. During the period, 35,200 unjts of direct materials were added at a cost of $80,960, and 37,100 units were completed. At the end of the period, 2,400 units were 25% completed. All materials are added at the beginning of the process. Direct labor was $25,100 and factory overhead was $5,600. The cost of the 2,400 units in process at the end of the period if the first-in, first-out method is used to cost inventories was
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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