Gray Brothers Products Inc. manufactures a liquid product in one department. Due to the nature of the product and the process, units are regula beginning of production. Materials and labor and overhead costs are added evenly throughout the process. The following summaries were prepar month of January: Production Summary Started in process..... Finished and transferred to the stockroom... In process, end of the month ..... Stage of completion........ Lost in process.. Cost Summary Units 10,000 8,000 1,000 1/2 1,000 $132,000 33,000 20,625 Materials.... Labor ..... Factory overhead..... Calculate the unit cost for materials, labor, and factory overhead for January and show the costs of units transferred to finished goods and of the in process inventory. Round your answers to two decimal places and use the rounded answers in subsequent calculations, if necessary.
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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