Gullen Partners produces cleaning solvents. On September 1, it had no work-in-process inventory. It started production of 63,600 gallons of solvent in September and completed production of 54,600 gallons. Cost records at Gullen show the following for September. Materials Conversion costs (labor and overhead) $ 47,668 289,348 Required: The production supervisor estimates that the ending work in process is 62 percent complete on September 30. Compute the cost of solvent completed and the cost of the solvent in work-in-process ending inventory as of September 30. Note: Do not round intermediate calculations. Cost of solvent completed Work-in-process ending inventory
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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