During August, Tibbetts's Casing Department equivalent unit product costs, computed under the weighted average method, were as follows: Transferred in $10.00 Material 2.00 Conversion 6.00 All material is introduced at the end of the process in the Casing Department. August's ending Work in Process Inventory contained 4,000 units that were 80 percent complete as to conversion. 25,000 units were transferred out during August to Finished Goods Inventory. a. Compute the total costs that should be assigned to the August 31, Work in Process. $ b. Compute the total cost of units transferred to finished goods. $ c. Prepare the journal entry that Tibbetts's accountant should make at the end of August related to the units transferred out. Account Debit Credit
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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