Its costing system uses two cost categories , direct materials and conversion costs. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Molding Inc. uses the WEIGHTED-AVERAGE PROCESS COSTING METHOD. Work in process, beginning inventory, 40% complete 200 units Units started during February 600 units Work in process, ending inventory, 30% complete 100 units Cost data: Work in process, beginning inventory: direct materials $ 100,000 Work in process, beginning inventory: conversion costs 100,000 Direct materials costs added during February 1,000,000 Conversion costs added during February 1,250,000 Complete the production report and answer the following questions: What is the manufacturing cost per unit: $________________per unit What is the amount of direct materials and conversion costs assigned to ending work in process? $_____________materials $_______________conver.costs
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.
- Molding Inc. manufactures plastic moldings for car seats. Its costing system uses two cost categories , direct materials and conversion costs. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Molding Inc. uses the WEIGHTED-AVERAGE
PROCESS COSTING METHOD.
Work in process, beginning inventory, 40% complete 200 units
Units started during February 600 units
Work in process, ending inventory, 30% complete 100 units
Cost data:
Work in process, beginning inventory: direct materials $ 100,000
Work in process, beginning inventory: conversion costs 100,000
Direct materials costs added during February 1,000,000
Conversion costs added during February 1,250,000
Complete the production report and answer the following questions:
What is the
What is the amount of direct materials and conversion costs assigned to ending work in process?
$_____________materials
$_______________conver.costs
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