Production Flow Physical Units Completed and transferred to the next department Add Ending work in process inventory 100 10 (40% complete as to conversion) 110 Total units to account for Less: Beginning work in process inventory Units started during December 20 (60% complete as to conversion) 90
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.
During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner
All materials are added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work in process inventory had $120 of raw materials and $180 of conversion costs incurred. Materials added during December were $540, and conversion costs of $1,484 were incurred. Krause uses the firstin, first-out (FIFO)
a. 110 units.
b. 104 units.
c. 100 units
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
