Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating department: Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory Production cost information for the Fabricating department follows. Beginning work in process Direct materials. Conversion Costs added this period Direct materials Conversion Multiple Choice 224,500 Calculate the equivalent units of production for conversion. 321,400 293,500 $ 101,760 342,150 Units 83,000 256,000 339,000 31,500 $ 754,680 922,300 82,700 $ 184,460 Direct materials. Conversion Percent. Percent Complete 1,676,980 70% 40% Complete 25% 10%
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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