P10-3 Expresso Corporation uses weighted average process costing and has just completed the production for the month of April. Relevant data for its two departments follow: April 2015 Mixing Finishing Department 'Department Quantity Work in process, beg. Stage of completion Started in process Transferred to next department Work in process, end Stage of completion 1,000 900 50% 50% 3,000 3,500 3,500 3,800 500 600 20% 50% In process, beginning Cost from preceding dept. P1,130 Materials 800 1,800 3,200 Labor 1,200 Overhead 1,000 P3,000 2,000 P8,130 Costs added: Cost from preceding dept. P ? Materials 2,800 4,200 5,580 5,000 2,100 Labor Overhead 3,320 Required: a. Compute the cost of goods transferred to Finishing Department? b. Compute the ending inventory of Mixing Department. C. Compute the unit cost of Finishing Department.
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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