Estrella Company Tableting Department Production & Cost Data 2017: Note: All direct materials are added at the beginning of the process. Production: Units in process, October 1, 80% complete 16,000 Units completed and transferred out 250,000 Units in process, October 31, 30% complete 30,000 Costs: Work in process, October 1: Transferred-in cost $800 Direct materials $300 Conversion costs $180 Total work in process $1,280 Current costs: Transferred-in costs $13,200 Direct materials $2,500 Conversion costs $5,000 Total current costs $20,700 (a) Using FIFO method, prepare a Process Costing Production Report. (Show all the calculations)
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.
Estrella Company Tableting Department Production & Cost Data 2017:
Note: All direct materials are added at the beginning of the process.
Production:
Units in process, October 1, 80% complete 16,000
Units completed and transferred out 250,000
Units in process, October 31, 30% complete 30,000
Costs:
Work in process, October 1:
Transferred-in cost $800
Direct materials $300
Conversion costs $180
Total work in process $1,280
Current costs:
Transferred-in costs $13,200
Direct materials $2,500
Conversion costs $5,000
Total current costs $20,700
(a) Using FIFO method, prepare a Process Costing Production Report.
(Show all the calculations)
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