Materials are added at the beginning of a production process, and ending work in process inventory is 20% complete with respect to conversion costs. Use the information provided to complete a production cost report using the weighted-average method. Costs to Account For Beginning inventory: materials $9,000 Beginning inventory: conversion 19,000 Direct material 58,600 Direct labor 75,000 Applied overhead 39,772 Total costs to account for $201,372 Units to Account For Beginning work in process 6,000 Units started into production 20,000 Transferred out 20,000
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.
Materials are added at the beginning of a production process, and ending work in process inventory is 20% complete with respect to conversion costs. Use the information provided to complete a production cost report using the weighted-average method.
| Costs to Account For | |
| Beginning inventory: materials | $9,000 |
| Beginning inventory: conversion | 19,000 |
| Direct material | 58,600 |
| Direct labor | 75,000 |
| Applied |
39,772 |
| Total costs to account for | $201,372 |
| Units to Account For | |
| Beginning work in process | 6,000 |
| Units started into production | 20,000 |
| Transferred out | 20,000 |
| Costs to account for | Materials | Conversion | Total |
| Beginning work in process | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 |
| Incurred during the period | fill in the blank 16 | fill in the blank 17 | fill in the blank 18 |
| Total costs to account for | $fill in the blank 19 | $fill in the blank 20 | $fill in the blank 21 |
| Equivalent units | fill in the blank 22 | fill in the blank 23 | |
| Cost per equivalent unit for department | $fill in the blank 24 | $fill in the blank 25 | $fill in the blank 26 |
| Transferred out costs | $fill in the blank 27 | ||
| End work in process: materials | $fill in the blank 28 | ||
| End work in process: conversion | fill in the blank 29 | ||
| End work in process: total | |||
| Costs to account for |
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