Lamberton Industries uses process costing. All of the company’s manufacturing activities take place in a single processing department. The following information was available for the month of July: Direct materials $ 90,000 Direct labor 37,000 Manufacturing overhead applied 51,000 Total costs to account for in July $ 178,000 Partially completed units in July’s beginning and ending work in process inventories were considered immaterial and were assigned no dollar value. During July, 50,000 units were completed, of which 45,000 were sold on account at $16 per unit. Required: Complete a production cost report for Lamberton Industries for the month of July. Note: Do not round intermediate calculations.
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.
Lamberton Industries uses
| Direct materials | $ 90,000 |
|---|---|
| Direct labor | 37,000 |
| Manufacturing |
51,000 |
| Total costs to account for in July | $ 178,000 |
Partially completed units in July’s beginning and ending work in process inventories were considered immaterial and were assigned no dollar value. During July, 50,000 units were completed, of which 45,000 were sold on account at $16 per unit.
Required:
Complete a production cost report for Lamberton Industries for the month of July.
Note: Do not round intermediate calculations.
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