he Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 6,600 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $31,680; labor $20,700; overhead $35,460. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)
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.
The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation.
Production: 6,600 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.
Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)
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QUIK FURNITURE COMPANY
Sanding Department Production Cost Report For the Month Ended March 31, 2020 |
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Equivalent Units
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Quantities
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Physical
Units |
Materials |
Conversion
Costs |
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Units to be accounted for
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Work in process, March 1
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enter a number of units
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Started into production
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enter a number of units | |||||||
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Total units
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enter a total number of units | |||||||
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Units accounted for
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Transferred out
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enter a number of units
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enter a number of units
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enter a number of units
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Work in process, March 31
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enter a number of units | enter a number of units | enter a number of units | |||||
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Total units
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enter a total number of units | enter a total number of units | enter a total number of units | |||||
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Costs
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Materials |
Conversion
Costs |
Total |
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Unit costs
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Total Costs
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$enter a dollar amount
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$enter a dollar amount
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$enter a total of the two previous amounts
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Equivalent units
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enter a number of units | enter a number of units | ||||||
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Unit costs
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$enter a dollar amount rounded to 2 decimal places
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$enter a dollar amount rounded to 2 decimal places
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$enter a total of the two previous amounts rounded to 2 decimal places
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Costs to be accounted for
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Work in process, March 1
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$enter a total amount
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Started into production
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enter a total amount | |||||||
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Total costs
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$enter a total of the two previous amounts
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Cost Reconciliation Schedule
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Costs accounted for
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Transferred out
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$enter a total amount
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Work in process, March 31
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Materials
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$enter a dollar amount
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Conversion costs
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enter a dollar amount | enter a subtotal of the two previous amounts | ||||||
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Total costs
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$enter a total amount for this Cost Reconciliation Schedule
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