Problem no. 3 Delacroix Co. had 800 units of inventory at the beginning of March 2010. Other information about that beginning Work in Process Inventory is as follows: Quantity: 800 units Percent Complete Direct material Direct labor Overhead 45 65 40 Costs Incurred $6,748 8,680 5,710 $21,138 Total beginning inventory Direct labor costs were extremely high during February, because the company had a labor strike and paid a high premium to get production workers that month. During March, Delacroix Co. started production of 11,400 units of product and incurred $259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of March, the company had 400 units in process (70 percent complete as to material, 90 percent complete as to direct labor, and 80 percent complete as to overhead).
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.
03(Cost Accounting)
Determine the following using the First-In First-Out (FIFO) method of
1. Equivalent units of production for materials and conversion cost
2. unit costs, and;
3. Inventory values
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