Howard Corporation has two production departments. Curing has 12,000 units in process at the beginning of the period, 3 / 4 complete. During the period, 45,000 units were received from Crushing, 48,000 units were transferred to Finished Goods, and 9,000 units were in process at the end of the period, 2/ 3 complete. Cost information was as follows: Cost of beginning Work in Process: Cost in Crushing $ 21,640 Cost in Curing: Materials 8,810 Labor 1,190 Factory overhead 2,420 Costs during the month: Cost of goods received from Crushing $ 85,520 Cost in Curing: Materials 53,830 Labor 10,690 Factory overhead 17,560 Total costs to be accounted for $201,660 Question: Using the information above: Determine the unit cost for the month in Curing. b. Determine the total cost of the products transferred to Finished Goods. c. Determine the total cost of the ending Work in Process 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.
Howard Corporation has two production departments. Curing has 12,000 units in process at the beginning of the period, 3 / 4 complete. During the period, 45,000 units were received from Crushing, 48,000 units were transferred to Finished Goods, and 9,000 units were in process at the end of the period, 2/ 3 complete.
Cost information was as follows:
|
Cost of beginning Work in Process: |
|
|
Cost in Crushing |
$ 21,640 |
|
|
|
|
Cost in Curing: |
|
|
Materials |
8,810 |
|
Labor |
1,190 |
|
Factory |
2,420 |
|
|
|
|
Costs during the month: |
|
|
Cost of goods received from Crushing |
$ 85,520 |
|
|
|
|
Cost in Curing: |
|
|
Materials |
53,830 |
|
Labor |
10,690 |
|
Factory overhead |
17,560 |
|
Total costs to be accounted for |
$201,660 |
Question:
Using the information above:
- Determine the unit cost for the month in Curing.
b. Determine the total cost of the products transferred to Finished Goods.
c. Determine the total cost of the ending Work in Process inventory.
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