he Lee Company uses a job-order costing system. The following data were recorded for June: Added During June---- JobJune 1 WorkDirect Materials Direct Labor Numberin Process Inventory 235 $2,500 $600 $400 236 $1,500 $800 $1,000 237 $1,000 $1,200 $1,750 238 $800 $1,500 $2,250 Overhead is charged to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers. 1. Lee Company's work-in-process inventory balance on June 30 was A. $9,450. B. $4,100. C. $3,300. D. $3,940.
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.
he Lee Company uses a
Added During June----
JobJune 1 WorkDirect Materials Direct Labor
Numberin Process
Inventory
235 $2,500 $600 $400
236 $1,500 $800 $1,000
237 $1,000 $1,200 $1,750
238 $800 $1,500 $2,250
1. Lee Company's work-in-process inventory balance on June 30 was
A. $9,450.
B. $4,100.
C. $3,300.
D. $3,940.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
