Department B of Ethel Manufacturing Corp, suffers an average of evaporation loss of 10%. The following data were obtained for the month of October, 2019: Units: In process, 9.600 gallons October 1 (2/5 completed) 30,000 gallons Received from Department A 25.200 gallons Finished and transferred 11.700 gallons In process, October 31 (1/4 complete) Costs: In process beginning P5.760 Received from Department A 30,000 Current costs Materials 19.440 Labor 7:290 Overhead 2.430 Under FIFO method, what was the actual units of the Work in Process Beginning Inventory?
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.
Consider the following data.
Department B of Ethel Manufacturing Corp, suffers an average of evaporation loss of 10%. The following data were obtained for the month of October, 2019:
Units: In process, 9.600 gallons
October 1 (2/5 completed) 30,000 gallons
Received from Department A 25.200 gallons
Finished and transferred 11.700 gallons
In process, October 31 (1/4 complete)
Costs:
In process beginning P5.760
Received from Department A 30,000
Current costs
Materials 19.440
Labor 7:290
Overhead 2.430
Under FIFO method, what was the actual units of the Work in Process Beginning Inventory?
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