Our company began operations on August 1, 2023. During August, we only worked on three jobs: Job 100, Job 200, and Job 300. The costs charged to these jobs during August and other relevant information are given below. You will need this to answer the next five questions. a) Job 100 and Job 200 were finished in December, but Job 300 was not finished b) Job 100 consisted of 7,000 units and Job 200 consisted of 7,500 units. c) During August, the company sold 5,600 units of Job 100 at a selling price of $20 each. Also, during August, the company sold 6,500 units from Job 200 at a selling price of $13 each. d) During the month of August, the company purchased $15,000 worth of Direct Material. Description Job 100 Job 200 Job 300 Direct Material Direct Labor $5,000 $7,500 $12,000 $15,500 Overhead $18,000 $7,750 Do NOT put "$" signs or Commas in your answer. Question: Compute the Ending Work in Process Inventory for August 31, 2023. $1,600 $6,400 $9,600
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.
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