Moca cola Pty (Ltd) manufactures one product in a single process and uses a process costing system. The following information is available for April 20X1 Work in process: 1 April 20X1 - 40% completed, Units: 250 000 Work in process: 30 April 20X1- 80% completed, Units: 180 000 Work in process: Put into production in April, Units: 320 000 Work in process: Completed and transferred in April , Units: 360 000 Additional information - The company uses the weighted average method of inventory valuation - Raw materials are added at the beginning of process and conversation takes place evenly throughout the process - Normal losses are estimated as 3% of units that reach the wastage point. Wastage occurs when the process is 60% complete - Cost information for April 20X1 was as follows Work in process ( 1 April 20X1) - Material- R1 400 000, Conversion- 840 000 Current production cost - Material - R1 790 000 , Conversion- 1 360 000 Required: a) Prepare the quantity statement
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.
Moca cola Pty (Ltd) manufactures one product in a single process and uses a
Work in process: 1 April 20X1 - 40% completed, Units: 250 000
Work in process: 30 April 20X1- 80% completed, Units: 180 000
Work in process: Put into production in April, Units: 320 000
Work in process: Completed and transferred in April , Units: 360 000
Additional information
- The company uses the weighted average method of
- Raw materials are added at the beginning of process and conversation takes place evenly throughout the process
- Normal losses are estimated as 3% of units that reach the wastage point. Wastage occurs when the process is 60% complete
- Cost information for April 20X1 was as follows
Work in process ( 1 April 20X1) - Material- R1 400 000, Conversion- 840 000
Current production cost - Material - R1 790 000 , Conversion- 1 360 000
Required:
a) Prepare the quantity statement
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