overhead are applied uniformly while materials are added at various stages throughout P8-2 Cingular Corporation has three processing departments, Alpha and Umega. Labor a the process. The following information was available for Omega: Quantity Transferred from Alpha Started during the month Finished and transferred to next department Ending work in process (60% complete) Cost incurred 1,800 ? 3,000 1,200 Materials Labor P22,000 13,200 8,800 P44,000 Overhead There are no beginning work in process inventory. Required: Calculate the equivalent production for each of the following independent cases: а. 100% of materials are added at the start of the process b. 100% of materials are added at the end of the process
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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