materials and conversion costs for the department): Pounds of fruit Production costs Beginning work in process (15% complete) 2,000 $12,080 Current period production (units started) 11,000
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.
QUESTION 41
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Organic Juices, Inc. has developed a fruit crushing and pulverizing process.
The following data relate to the crushing process for November (note: production costs include the cost of materials and conversion costs for the department):
Pounds of fruit
Production costs
Beginning work in process (15% complete)
2,000
$12,080
Current period production (units started)
11,000
25,789
Ending work in process (60% complete)
3,000
Calculate number of units started and completed (weighted average) for November.
15,000
16,000
10,000
11,000
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