In the assembly department, what is the cost of goods manufactured or cost assigned to units completed for the year ended December 31, 2020? a.36,564,500 b. 26,117,500 c. 36,451,200 d. 35,523,800
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.
In the assembly department, what is the cost of goods
a.36,564,500
b. 26,117,500
c. 36,451,200
d. 35,523,800
![Problem 2. Cena company employs Weighted Average process costing system in the assembly department
and
FIFO process costing system in the finishing department concerning its only product which
undergoes production in assembly department and finishing department. The following data for the year
ended December 31, 2020 are provided:
ASSEMBLY DEPARTMENT
Units
Cost
100,000 units
as to conversion cost
- 40% completed | Cost of Direct material - P3M
Cost of Direct labor - P5M
January 1, 2020
Cost of Factory Overhead - P2M
150,000 units -
as to conversion cost
400,000 units
December 31, 2020
80% completed ?
Units started during the year
DM cost added during 2020
P12M
DL cost added during 2020
P15M
FOH cost added during 2020
P13M
FINISHING DEPARTMENT
Units
Cost
January 1, 2020
50,000 units - 70% incomplete Cost of Transferred in - P10M
conversion cost
Cost of Direct material - P6M
Cost of Direct labor - P1M
Cost of Factory Overhead - P3M
30,000 units
as to conversion cost
December 31, 2020
- 10% incomplete ?
Units started during the year
DM cost added during 2020
P30M
DL
cost added during 2020 -
P40M
FOH cost added during 2020
P10M](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c30cc9a-f8b0-43b8-b977-d57eebe03e12%2Fa7036a15-86ec-48ee-9b53-b5c02f019324%2Feh32bcc_processed.png&w=3840&q=75)
![Additional information for the year:
It is the company's policy to add conversion cost evenly throughout the period in the two
departments.
b. It is the company's policy to add all direct materials in the assembly department at the start of
the process while all direct materials in the finishing department are added at the end of the
a.
process.
There is no spoilage in both departments.
С.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c30cc9a-f8b0-43b8-b977-d57eebe03e12%2Fa7036a15-86ec-48ee-9b53-b5c02f019324%2F3u925u_processed.png&w=3840&q=75)
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