ocess costing system. A unit of product passes through two departments: Assembly and finishing before it is complete. Information regarding Assembly Department follow: Work-in-process, Feb 1 4,000 units Spoiled units 3,000 Started in Production 26,000 Transferred out 24,000 Raw materials are added at the beginning of processing in the Assembly department without changing the number of units being processed. Work in Process on February 1 was 90% complete as to conversion while 4/5 converted on February 28. In the Assembly Department, inspect
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.
Bryan Company employs
Assembly and finishing before it is complete. Information regarding Assembly Department follow:
Work-in-process, Feb 1 4,000 units
Spoiled units 3,000
Started in Production 26,000
Transferred out 24,000
Raw materials are added at the beginning of processing in the Assembly department without changing the number of units being processed. Work in Process on February 1 was 90% complete as to conversion while 4/5 converted on February 28. In the Assembly Department, inspection takes place when the units are 3/4 converted. The company usually experienced a 5% loss based on the completed units. Cost data for the month of February follow:
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Total cost of units transferred-out and total cost of work in process, end are:
A. P1,656,000; P186,880
B. P1,718,420; P180,000
C. P1,718,420; P186,880
D. P1,656,000; P180,000
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