Dumbledore Publishing manufacturers wizarding textbooks. They utilize a process costing system to track their manufacturing costs. Information regarding beginning work in process inventory is provided below: Beginning physical units 6,200 units Beginning costs $211,400 The following were incurred during production: Physical units started 5,100 units Direct Materials $46,900 Direct Labor $72,000 Manufacturing Overhead $50,200 At the end of the period, 4,800 physical units remained in progress, at 80% completion. Using the information provided, answer the following questions: Ending Inventory balance:
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.
Dumbledore Publishing manufacturers wizarding textbooks. They utilize a
| Beginning physical units | 6,200 units |
| Beginning costs | $211,400 |
The following were incurred during production:
| Physical units started | 5,100 units |
| Direct Materials | $46,900 |
| Direct Labor | $72,000 |
| Manufacturing |
$50,200 |
At the end of the period, 4,800 physical units remained in progress, at 80% completion. Using the information provided, answer the following questions:
Ending Inventory balance:
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