Seacrest Company uses a process costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity and costs for November: Department A—Physical Flow Schedule -Units to account for: Units in beginning WIP = 5,000 Units started in November = 25,000 Total units to account for = 30,000 -Units accounted for: Units completed and transferred out: Started and completed = 23,000 From beginning WIP = 5,000 Units in ending WIP = 2,000 Total units accounted for = 30,000 Department A—Equivalent Unit Calculation -Equivalent units in beginning WIP = 3,000 Units started and completed = 23,000 Equivalent units in ending WIP = 1,600 Total equivalent units = 27,600 Unit cost for Department A... Rounded to 3 decimal places. Unit cost $ = 5.544 Cost of EWIP = $8,870.00 1(a) Using the FIFO method, calculate the following for Department A: Note: Use the unit cost previously computed in these and subsequent computations. Cost of goods transferred out ???? 1(b) Using the FIFO method, prepare a cost reconciliation for Department A. Note: Costs to account for (as provided) and the Total costs accounted for (using item cost) should agree. Department A—Cost Reconciliation 1 Costs to account for: 2 Beginning WIP $16,900.00 3 Incurred during November $153,020.00 4 Total costs to account for $169,920.00 5 Costs accounted for: 6 Units in beginning WIP: 7 From current period ???? 8 From prior period ???? 9 Units started and completed ???? 10 Goods in ending WIP ???? 11 Total costs accounted for ????
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.
Seacrest Company uses a process costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity and costs for November:
Department A—Physical Flow Schedule
-Units to account for:
Units in beginning WIP = 5,000
Units started in November = 25,000
Total units to account for = 30,000
-Units accounted for:
Units completed and transferred out:
Started and completed = 23,000
From beginning WIP = 5,000
Units in ending WIP = 2,000
Total units accounted for = 30,000
Department A—Equivalent Unit Calculation
-Equivalent units in beginning WIP = 3,000
Units started and completed = 23,000
Equivalent units in ending WIP = 1,600
Total equivalent units = 27,600
Unit cost for Department A... Rounded to 3 decimal places.
Unit cost $ = 5.544
Cost of EWIP = $8,870.00
1(a) Using the FIFO method, calculate the following for Department A:
Note: Use the unit cost previously computed in these and subsequent computations.
Cost of goods transferred out ????
1(b) Using the FIFO method, prepare a cost reconciliation for Department A.
Note: Costs to account for (as provided) and the Total costs accounted for (using item cost) should agree.
Department A—Cost Reconciliation
1 Costs to account for:
2 Beginning WIP $16,900.00
3 Incurred during November $153,020.00
4 Total costs to account for $169,920.00
5 Costs accounted for:
6 Units in beginning WIP:
7 From current period ????
8 From prior period ????
9 Units started and completed ????
10 Goods in ending WIP ????
11 Total costs accounted for ????
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