Love Company uses FIFO method of process costing. The company’s cost accountant has provided you with the following information in its Finishing Department for the month of May: In process, beg. (100%M, 70% converted) 10,000 Transferred out 256,000 In process, end (100% M, 60% converted) 37,000 Current period; DM cost per EUP P10.20 CC cost per EUP P21.50 Prior dept. cost P24.00 Prior period DM cost per EUP P15.00 CC cost per EUP P28.50 Prior dept. cost P30.00 The total costs to account in the Finishing Department is: The cost of goods manufactured for the month of May is:
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.
Love Company uses FIFO method of
In process, beg. (100%M, 70% converted) 10,000
Transferred out 256,000
In process, end (100% M, 60% converted) 37,000
Current period;
DM cost per EUP P10.20
CC cost per EUP P21.50
Prior dept. cost P24.00
Prior period
DM cost per EUP P15.00
CC cost per EUP P28.50
Prior dept. cost P30.00
The total costs to account in the Finishing Department is:
The cost of goods manufactured for the month of May is:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
