Halligan Company manufactures a product in four departments. Data for the first department follow: Production: Units in process, July 1, 75% complete Units completed and transferred out Units in process, July 31, 25% complete Costs: Work in process, July 1 Costs added during the month Halligan uses FIFO costing. Required: 60,000 150,000 30,000 $193,500 $500,625 1. Prepare a physical flow analysis for the first department for July. 2. Calculate equivalent units of production for the first department for July. 3. Calculate unit cost for materials, conversion, and in total for the first department for July. 4. Calculate the cost of units transferred out and the cost of ending work in process. 5. Prepare a cost reconciliation for the first department for July.
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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