OBLEM 23: Cost of Production Report (Continuous) RMG Corporation has the following information for the current month: Units started units Beginning Work in Process: (65% to be done) Total spoilage Spoilage within tolerance level Ending Work in Process: (20% incomplete) Transferred out 175,000 35,000 14,875 6,125 25,375 units units units units ? units Beginning Work in Process Costs: Material P46,250 60,675 Conversion Current Costs: P170,625 265,335 Material Conversion All materials are added at the start of the production process. RMG Corporation inspects goods at 100 percent completion as to conversion. Using the method that does not commingle the beginning and curr
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.
PROBLEM 23: Cost of Production Report (Continuous) RMG Corporation has the following information for the current month: Units started units Beginning Work in Process: (65% to be done) Total spoilage Spoilage within tolerance level Ending Work in Process: (20% incomplete) Transferred out 175,000 35,000 14,875 6,125 25,375 units units units units ? units Beginning Work in
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