its under operation at the beginning of the period 20,000 units with a completion level of 80%. 2. Units started during the period 20,000 units 3. Completed and converted units for the third stage 27,000 units 4. Units in process at the end of the period 13,000 units with 80% completion level. If you know that: Items added at 70% completion level. The cost of production under operation at the beginning of the period 475,400 riyals (270,000 riyals direct materials, 128,400 riyals transfer costs) The costs of the stage in the current period are as follows: (330,000 riyals direct materials, 171,200 riyals transfer costs) . . Required Preparing the production report and the current stage costs according to the weighted average method and the incoming method
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.
The second homework of Cost Accounting 2 first question
The following data relates to the second stage of an industrial establishment for one of the cost periods
1. Units under operation at the beginning of the period 20,000 units with a completion level of 80%.
2. Units started during the period 20,000 units
3. Completed and converted units for the third stage 27,000 units
4. Units in process at the end of the period 13,000 units with 80% completion level.
If you know that:
Items added at 70% completion level.
The cost of production under operation at the beginning of the period 475,400 riyals (270,000 riyals direct materials,
128,400 riyals transfer costs)
The costs of the stage in the current period are as follows: (330,000 riyals direct materials,
171,200 riyals transfer costs)
.
.
Required
Preparing the production report and the current stage costs according to the weighted average method and the incoming method
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