Department A of Muscat Company has the following production and cost data for April. Production: Beginning work in process 10,000 units that are 100% complete as to materials and 20% complete as to conversion costs; units transferred out 17,000 units; and ending work in process 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs. An analysis of the costs relating to work in process at April 1 and to production activity for April as follows: Materials Conversion OMR Work in process 4/1.. .. OMR30,000 OMR 135,000 OMR Costs added during April.. 600,000 300,000 Instructions (a) Compute the equivalent units of production for (a) materials and (b) conversion costs for the month of April. (b) The total cost per equivalent unit for April
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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