Required: 1. Reconcile the total Cost to Account for the process. 2. Prepare a statement of total cost accounted for the process. reconcile the total cost to account for the process
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.
Stem Games manufactures playing cards. It has three departments:
Printing, Cutting & Collating, and Wrapping. Transferred-in costs are
considered materials costs. The following information is available
for the Wrapping department for the month of October:
Beginning work in process
(100% complete for materials, 80% complete for conversion)
Decks transferred in
Decks completed and transferred to Finished Goods Inventory
Ending Work in Process
(100% complete for materials, 45% complete for conversion
Costs:
Beginning work in process:
Direct materials $ 198,000
Conversion cost $ 20,800
Costs transferred in $ 1,488,625
October costs:
Direct materials $ 24,700
Conversion costs $ 648,275
!
Required:
1. Reconcile the total Cost to Account for the process.
2. Prepare a statement of total cost accounted for the process.
reconcile the total cost to account for the process
| prior period cost | direct materials | conversion | total cost |
| current periods cost | |||
| total cost to account for | |||
prepare a statement of total cost accounted for the process
| costs to account for | direct materials | conversion | total cost |
| units completed | |||
| ending inventory | |||
| total cost accounted for | |||
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