For the month of May, 1999, PACMAN Corporation’s production records disclosed the following data: Opening work in process (70% complete) 40,000 units Started in process during the month 300,000 units Closing work in process (80% complete) 60,000 units The cost of the opening work in process was P140,000 while the production costs during the month amounted to P1,170,000. For the month of May, 1999, the unit cost of production was: Group of answer choices P3.90 P4.18 P4.00 P4.69
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 the month of May, 1999, PACMAN Corporation’s production records disclosed the following data:
Opening work in process (70% complete) 40,000 units
Started in process during the month 300,000 units
Closing work in process (80% complete) 60,000 units
The cost of the opening work in process was P140,000 while the production costs during the month amounted to P1,170,000. For the month of May, 1999, the unit cost of production was:
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