Plastic Queen Manufacturing Company produces a plastic toy in a two-stage molding and finishing operation. The company uses the weighted average method of process costing. During June, the following data were recorded for the Finishing Department. Units of beginning Work in Process Inventory Percentage of comple tion of Beg Inventory Cost of direct materials in beg WIP 10,000 25% PO Units started 70,000 Units Completed Units in ending WIP Inventory Percentage of completion of Ending Inventory 50,000 20,000 95% Spoiled Units 10,000 Costs added during the current period: Direct Materials P655,200 Direct Labor P635,600 Manufacturing Overhead WIP, Beg: P616,000 Transferred In Costs P82,900 Conversion Costs P42,000 Costs if units transferred in during current period P647,500
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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