E3.13 (LO.3. 4), AP The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2022. All materials are added at the beginning of the process. Manufacturing Costs Beginning work in process Materials Conversion costs Costs added during month Direct materials Direct labor Manufacturing overhead $18,000 14,175 $ 32,175 180,000 67,380 61,445 $341,000 Production Data Beginning work in process Units completed and transferred out Units started in production Ending work in process 15,000 units 55.000 51,000 11,000 units nstructions eginning work in process and ending work in process were 10% and 20% complete with respect to conversion costs, espectively. Prepare a production cost report for the Welding Department for the month of February. etermine equivalent units, unit costs, and assignment of costs.
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.
Please do not give solution in image format thanku
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
