Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process-Filling on April 1 and debits to the account during April were as follows: Bal., 700 units, 30% completed: Direct materials (700 × $4.20) $2,940 Conversion (700 × 30% × $1.75) 368 $3,308 From Cooking Department, 7,500 units $32,250 Direct labor 8,560 Factory overhead 2,542 During April, 700 units in process on April 1 were completed, and of the 7,500 units entering the department, all were completed except 600 units that were 90% completed. Charges to Work in Process-Filling for May were as follows: From Cooking Department, 9,300 units $41,850 Direct labor 12,032 Factory overhead 2,477 During May, the units in process at the beginning of the month were completed, and of the 9,300 units entering the department, all were completed except 450 units that were 35% completed.
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.
I am trying to figure out how to claculate the finished goods for this problem. for april and may. the answers go on the work-in process filling account and I am having a veryh challenging time trying to figure out how this was calculated. On the example your site provides it says that the finished goods are 49818 but I can't figure out how you got that number. Can you help please?
| Bal., 700 units, 30% completed: | |
| Direct materials (700 × $4.20) | $2,940 |
| Conversion (700 × 30% × $1.75) | 368 |
| $3,308 | |
| From Cooking Department, 7,500 units | $32,250 |
| Direct labor | 8,560 |
| Factory overhead | 2,542 |
| From Cooking Department, 9,300 units | $41,850 |
| Direct labor | 12,032 |
| Factory overhead | 2,477 |
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