Required: 1. Prepare the Cutting department's production cost report for October using the weighted average method. 2. Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly.
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.
![Fast Company produces its product through two processing departments: Cutting and Assembly. Information for the Cutting
department follows.
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
Units
30,000
140,000
150,000
20,000
$ 17,100
67,200
144,400
862,400
Direct
Materials Conversion
Percent
Complete
100%
$ 84,300
1,006, 800
$ 1,091, 100
Percent
Complete
80%
Required:
1. Prepare the Cutting department's production cost report for October using the weighted average method.
2. Prepare the October 31 journal entry to transfer the cost of completed units from cutting to Assembly.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F185ecc19-e560-4e5e-9ebf-901f6a3189b7%2F2bd66643-598d-4014-b53a-ea7e11a57943%2Fhoc330g_processed.png&w=3840&q=75)
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