Direct Materials Direct Labor Total Overhead Allocated Manufacturing Costs Beginning inventory, Mar. 1 Costs added during March Total costs $ 475 $ 275 $ 300 2,965 $ 1,050 5,045 2,900 10,910 $ 5,520 $ 3,175 $ 3,265 $ 11,960 Direct Materials Direct Labor Total Overhead Allocated Manufacturing Costs Beginning inventory, Mar. 1 Costs added during March Total costs $ 475 $ 275 $ 300 2,965 $ 1,050 5,045 2,900 10,910 $ 5,520 $ 3,175 $ 3,265 $ 11,960
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.
Preparing a production cost report, beginning WIP, no costs transferred in;
Smith Paper Co. produces the paper used by wallpaper manufacturers. Smith’s four-stage process includes mixing, cooking, rolling, and cutting. On March 1, the Muting Department had 400 rolls in process. During March, the Mixing Department completed the mixing process for those 400 rolls and also started and completed the mixing process for an additional 4,100 rolls of paper. The department started but did not finish the mixing process for an additional 500 rolls, which were 20% complete with respect to both direct materials and conversion Work at the end of March. Direct materials and conversion costs are incurred evenly throughout the mixing process. The Mixing Department compiled the following data for March:
Requirements
- Prepare a production cost report for the Mixing Department for March. The company uses the weighted-average method.
- Journalize all transactions affecting the company’s mixing process during March. Assume labor costs are accrued and not yet paid.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 8 images
