Required: Prepare a production cost report (using the production cost template) for the month of March.
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.
solve please with full work explanation computation formula with steps so that II can understand easily
![Exercise 1) Woolly-Woolly Co. is a producer of woolen yarn made from wool imported from
other countries. Raw wool is processed, spun, and finished before being shipped out to knitting
and weaving companies. Material is added in the beginning of processing and conversion costs
are added evenly throughout processing.
Woolly-Woolly began the month of March with 5,000 units in process that were 100
percent complete as to materials and 55 percent complete as to labor and overhead. They started
23,000 units into production during the month of which 6,000 remained in ending work in
process inventory and were 100 percent complete as to materials and 60 percent complete as to
conversion costs. The cost data are as follows:
Beginning work in process:
Direct materials
Direct labor
Manufacturing overhead
Costs added during March:
Direct materials
Direct labor
Manufacturing overhead
$ 4,000
$ 1,050
$ 1,450
$22,280
$ 9,990
$17,522
Required:
Prepare a production cost report (using the production cost template) for the month of March.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c411e36-9043-404d-ab88-a2537a1337c2%2Fb344cfbd-70f9-42a1-b514-d9f9e407f9d9%2F13d98et_processed.png&w=3840&q=75)
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