Samahan, Inc. manufactures a highly sensitive smoke alarm and uses the FIEO method. In costing finished goods, the unit costs for units completed from the worl in-process at the beginning of the period is kept separate from the unit cost of thoss started and completed during the period. The total manufacturing costs for the month of June, 2016 is P264,000 and 2,750 units are completed during the month. The inventories at the beginning pf June are: Smoke alarm in process (80% complete) Smoke alarms on hand (complete) The inventories at the end of June are: P128,000 76,800 1,250 units 600 units Smoke alarm in process (50% complete) Smoke alarms on hand (complete) 500 units 700 units Required 1. Total cost of the units in process, end 2. Cost of finished goods inventory at the end 3. Total costs of the units sold
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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