For March 2024, The Jacksonville shirt company compiled the following data for the Cutting and sewing department Department Item Amount units Cutting Beginning Balance $0 0 Shirts Started in march 1200 shirts Direct Materials added in March 1,920 Conversion costs 1,320 Completed and transferred to sewing ??? 1,200 Shirts Ending Balance 0 0 shirts Sewing Beginning Balance, transferred in, $1,350; conversion costs, $650 $2000 500 shirts Transferred in from cutting ??? ??? Conversion costs added in March 1,196 Completed and transferred to finished goods ??? 1,000 shirts Ending Balance, 60% complete ??? ??? 1. Complete a production cost report for the Cutting Department and the Sewing department. What is the cost of one basic shirt?
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.
For March 2024, The Jacksonville shirt company compiled the following data for the Cutting and sewing department
| Department | Item | Amount | units |
| Cutting | Beginning Balance | $0 | 0 Shirts |
| Started in march | 1200 shirts | ||
| Direct Materials added in March | 1,920 | ||
| Conversion costs | 1,320 | ||
| Completed and transferred to sewing | ??? | 1,200 Shirts | |
| Ending Balance | 0 | 0 shirts | |
| Sewing | Beginning Balance, transferred in, $1,350; conversion costs, $650 | $2000 | 500 shirts |
| Transferred in from cutting | ??? | ??? | |
| Conversion costs added in March | 1,196 | ||
| Completed and transferred to finished goods | ??? | 1,000 shirts | |
| Ending Balance, 60% complete | ??? |
??? |
1. Complete a production cost report for the Cutting Department and the Sewing department. What is the cost of one basic shirt?
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