-PROCESS COSTING- XYZ Inc. manufactures an antacid product that passes through two departments. Data for May for the first department are as follows: GAL. 80,000 MAT'LS LABOR $ 69,300 OH $ 28,000 $ 45,000 WIP, May1 Gallons started in 760,000 process Gallons transferred 790,000 50,000 out WIP, May 31 Cost added during May 907,200 370,000 592,000 The ending WIP inventory was 80% complete as to materials and 75% complete as to processing. Required: 1. Assume that the company uses the weighted-average method of accounting for units and cost. Prepare a quantity schedule and a computation of equivalent units for May's activity. 2. Determine the total and unit cost for May.
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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