lberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 12,000 units during November. The following production activity in both costs refers to the Assembly department's November activities. Assembly Department Beginning work in process inventory 3,000 Units started this period 12,000 Units completed and transferred out 10,000 Ending work in process inventory 5,000 Cost of beginning work in process Direct materials Conversion Costs added this month Direct materials Conversion Units Percent Complete for Direct Materials Percent Complete for Conversion 60% 40% $ 1,455 1,105 19,920 85% $ 2,560 20,045 39,965 35% S 20-13 (Algo) Weighted average: Entry to transfer costs LO P4 Prepare the November 30 journal entry to record the transfer of costs from the Assembly department to the Painting department. Use the weighted average 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.
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