RC Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers... For December 2021, RC Company presented the following costs on three processes: Costs incurred: Process A Process B Process C Materials 149,400 98,800 79,040 80% at the 122,250 96,800 77,440 50% at beginning, 50% at 80% 100,000.00 92,400.00 73,920.00 40% at beginning, Direct Labor Overhead Materials are added at: beginning, remaining 20% at 50% complete. 30% at 50% complete complete, and remaining 30% at 80% complete. Started/Transferred 50,000 units In Completed and transferred out 49,000 units 47,500 units 45,000 units In Process, end 1,000 units 40% 1,000 units 70% 1,500 units 60% complete; 1,000 units 30% complete complete complete, 500 units at 40% complete.
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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