Nutrition Inc. has the following information from its second department, Encapsulating, for June. Prepare the June cost of production report Unit Data: Quantity Beginning work in process 300 Transferred in from Heating Department 5,700 Transferred out to Finished Goods 5,600 Ending work in process 400 Stage of Completion Beginning Ending Transferred In Prior Department Costs 100% 100% Materials 90 80 Labor 90 60 Overhead 90 60 Beginning Cost Data: Work in Process Current Month Transferred In Prior Department Costs $500 $10,000 Materials 80 1,400 Labor 68 1,100 Overhead 52 1,700
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.
Nutrition Inc. has the following information from its second department, Encapsulating, for June. Prepare the June cost of production report
Unit Data: Quantity
Beginning work in process 300
Transferred in from Heating Department 5,700
Transferred out to Finished Goods 5,600
Ending work in process 400
Stage of Completion
Beginning Ending
Transferred In Prior Department Costs 100% 100%
Materials 90 80
Labor 90 60
Beginning
Cost Data: Work in Process Current Month
Transferred In Prior Department Costs $500 $10,000
Materials 80 1,400
Labor 68 1,100
Overhead 52 1,700
| Statement of Equivalent Units | |||
| Particulars | Output Units |
Material | Labor | Overhead | |||
| Opening Unit | 300 | 10% | 30 | 10% | 30 | 10% | 30 |
| Units Completed | 5600 | 100% | 5600 | 100% | 5600 | 100% | 5600 |
| Closing WIP | 400 | 80% | 320 | 60% | 240 | 60% | 240 |
| Equivalent Production | 5950 | 5870 | 5870 | ||||
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