equivalent unit Costs accounted for: Completed and transferred out Ending work-in- process Total costs accounted for 120,044 X 16,006 X 136,050.00 X 32,500 X 0✓ 32,500.00 X 52,021 X 5,549 X 57,570.00 X 204,565 X 21,555 X 226,120.00 X
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.
Adirondack Mountain Springs produces a clean, crisp all natural spring feed bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, put packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred costs of $1,650, direct labor of $470, and manufacturing
August data for the Bottling Department is as follows:
Adirondack Mountain Springs
| Units | Transferred In | Direct Materials | Direct Labor | Manufacturing Overhead | Total Costs | |
|---|---|---|---|---|---|---|
| Beginning Work-in-Process Inventory 30% Complete | 4,000 | $1,650 | $470 | $380 | $2,500 | |
| Production started | 166,000 | $134,400 | $32,500 | $33,800 | $22,920 | $223,620 |
| Transferred out | 150,000 | |||||
| Ending Inventory 80% complete | 20,000 |
Prepare the production cost report for the Bottling Department for August.
(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
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