Direct materials are placed into production at the beginning of the process. All spoilage is normal and is detected at the end of the proceNS. Ending WIP is 60O% completed as to conversion. 13. New Image Sports uses a process eosting system. For March, the company had thhe Beginning work-in-process inventory (1/3 complete) following activities: Units placed in production Good units completed Ending work-in-process inventorry Cost of beginning work in process Direct material costs, current Conversion costs, current 7.200 units 28.NO0 units 21,600 units 12.000 units $ 6,000 $21.600 $14,400 Other information: Conversion 4,800 14,400 Equivalent Units Beginning work in process Started and completed Normal spoilage Work in process, ending Direct Materials 2,400 7,200 28,800 14,400 2,400 12,000 28,800 Total $0.50 SO.75 Equivalent-unit costs Total cost of good units completed and transferred out under FIF O method was: A) S 29,40o B) S18,000 C) S11,400 D) $8,400 E) None of the above
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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