In the Shaping Department of Coronado Company the unit materials cost is $3.00 and the unit conversion cost is $1.90. The department transferred out 7200 units and had 2000 units in ending work in process 15% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is $6570. $6000. $9800. $1470.
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 Shaping Department of Coronado Company the unit materials cost is $3.00 and the unit conversion cost is $1.90. The department transferred out 7200 units and had 2000 units in ending work in process 15% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is
Work in process inventory can define as inventory which is not completed or which is in the middle of production and yet to be completed in the future and the raw material and direct labor are engaged with the work in process inventory to make it finished good inventory.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
