S Duffield Lubricants produces oil-based machine lubricants. On December 1, it had no work-in-process inventory. It starts production of 94,000 gallons of lubricant in December and completes 56,400 gallons. The costs of the resources used by Duffield in December consist of the following. Materials. Conversion costs (labor and overhead) $ 187,568 226,784 Required: The production supervisor estimates that the ending work in process is 40 percent complete. Compute the cost of lubricant transferred to finished goods and the amount in work-in-process ending inventory as of December 31. Note: Do not round intermediate calculations. Cost of lubricant transferred to finished goods Work-in-process ending inventory
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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