Pensacola Processing Company had 5,000 units of product in work-in-process inventory at the beginning of the period and started 25,000 units during the period. At the end of the period, 4,000 units remained in work in process. The ending work-in-process inventory was estimated to be 60% complete. The cost of the units in beginning work in process inventory was $24,000. During the period, $40,000 of product costs were added. Using process costing and equivalent units of production, the cost of the completed units transferred to Finished Goods is _____and the cost of the 4,000 work-in- process units at the end of the period is
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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