Following is information about the assembly department of a company: 1. 2. 3. 4. 5. There were 191,300 units in work in process inventory on August 1. With respect to units transferred in, 100% were complete and costs incurred amounted to $144,900. With respect to conversion, 70% of the units were complete and costs incurred amounted to $53,800. 510,500 units were transferred in from the cutting department during August. 580,600 units were completed during August and transferred to the finished goods inventory. During August, costs incurred were as follows: $486,720 for units transferred in from cutting, $481,898 for direct materials used, and $142,196 for conversion costs. There are 121,200 units in work in process inventory on August 31. With respect to the units transferred in, 100% are complete and 60% are complete with respect to conversion.
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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