P3-6A Puzzle Me is a company that recycles calendars into jigsaw puzzles. The Assembly Dept will apply glue to cardboard and then press a calendar page onto the cardboard. The cutting department cuts the calendar board into puzzle pieces and packages the puzzles in a box. The box is then moved to the finished goods store. During October the company incurred the following costs: Units: Beginning W.I.P - units Direct Materials - 100% complete Conversion Costs - 70% complete Transfer In from Cutting Department Completed and Transferred out Ending W.I.P - units Direct Materials - 100% complete Conversion Costs - 40% incomplete Costs: Beginning WIP Direct Materials - 100% complete Conversion Costs - 90% complete Transfer In Costs incurred during production in October Direct Materials Direct Labor Manufacturing Overhead Instruction Assembly Dept 5,000 35,000 30,000 10,000 $15,000 $25,000 $40,000 $80,000 $40,000 $60,000 Prepare the production cost report for Assembly department for October, 2016
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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