Question JYD Company uses two departments to produce a detergent. It uses the weighted average process costing and has just completed the production for the month of April. Relevant data for its two departments follow: Mixing Department Finishing Department Quantity units: Work in process, beginning 1,000 900 Stage of completion 50% 50% Started in process 3,000 0 Transferred to next department 3,500 3,500 Work in process, ending 500 600 Stage of completion 20% 50% Costs data: In process, beginning Cost from preceding department - $1,130 Materials $800 1,800 Labor 1,200 3,200 Overhead 1,000 2,000 Current costs Cost from preceding department - $? Materials $2,800 $5,580 Labor 4,200 5,000 Manufacturing Overhead 3,320 2,100 Required: a. The cost of beginning Work in process in Finishing Department is b. The cost of ending Work in process in Finishing Department is
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.
JYD Company uses two departments to produce a detergent. It uses the weighted average
| Mixing Department | Finishing Department | |
| Quantity units: | ||
| Work in process, beginning | 1,000 | 900 |
| Stage of completion | 50% | 50% |
| Started in process | 3,000 | 0 |
| Transferred to next department | 3,500 | 3,500 |
| Work in process, ending | 500 | 600 |
| Stage of completion | 20% | 50% |
| Costs data: | ||
| In process, beginning | ||
| Cost from preceding department | - | $1,130 |
| Materials | $800 | 1,800 |
| Labor | 1,200 | 3,200 |
| |
1,000 | 2,000 |
| Current costs | ||
| Cost from preceding department | - | $? |
| Materials | $2,800 | $5,580 |
| Labor | 4,200 | 5,000 |
| Manufacturing Overhead | 3,320 | 2,100 |
Required:
a. The cost of beginning Work in process in Finishing Department is
b. The cost of ending Work in process in Finishing Department is
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