Job-cost records for Boucher Company contained the following data: Total Cost Date Date Date of Job Job No. Started Finished Sold at June 30 220 May 18 June 12 June 20 $6,000 221 May 20 June 19 June 21 4,000 222 June 7 July 5 July 12 7,000 223 June 10 June 28 July 1 6,500 224 June 19 July 16 July 25 8,000 Required: Compute WIP inventory at June 30. Compute finished goods inventory at June 30. Compute cost of goods sold for June.
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.
- Job-cost records for Boucher Company contained the following data:
Total Cost
Date Date Date of Job
Job No. Started Finished Sold at June 30
220 May 18 June 12 June 20 $6,000
221 May 20 June 19 June 21 4,000
222 June 7 July 5 July 12 7,000
223 June 10 June 28 July 1 6,500
224 June 19 July 16 July 25 8,000
Required:
- Compute WIP inventory at June 30.
- Compute finished goods inventory at June 30.
- Compute cost of goods sold for June.
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