Process costing system: Use weighted average method to prepare cost of production report for April (must show calculations or no credit; round off unit costs to 3 decimal places) April 1 beginning inventory/WIP 800 units During April units started: 10,000 units April 30, ending inventory/WIP 1,800 units Completion rates: April 1 direct materials: 75%; conversion costs: 40% April 30 direct materials: 30%; conversion costs: 20% Work-in-Process account cost information: Beginning inventory – direct materials $ 22,000 Beginning inventory – conversion costs 35,000 April direct materials used 50,000 April conversion costs 93,000 ACCOUNT BALANCE (total) $ 200,000 COST OF PRODUCTION REPORT:
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.
April 1 beginning inventory/WIP 800 units
During April units started: 10,000 units
April 30, ending inventory/WIP 1,800 units
Completion rates: April 1 direct materials: 75%; conversion costs: 40%
April 30 direct materials: 30%; conversion costs: 20%
Work-in-Process account cost information:
Beginning inventory – direct materials $ 22,000
Beginning inventory – conversion costs 35,000
April direct materials used 50,000
April conversion costs 93,000
ACCOUNT BALANCE (total) $ 200,000
COST OF PRODUCTION REPORT:
Step by step
Solved in 2 steps with 2 images
