Softkin Company manufactures sun protection lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year Work in process, January 1 Gallons started 350,000 Gallons transferred out 294,000 Direct materials cost $700,000 Direct labor cost $1,490,720 Overhead applied $2,236,080 Direct materials are added at the beginning of the process. Ending inventory is 80 percent complete with respect to direct labor and overhead. Required: Prepare a production report for the Mixing Department for the current year. If an amount is zero, enter "0". Softkin Company Mixing Department Production Report for Current Year Unit Information Units to account for: Total units to account for Units accounted for: Equivalent Units Physical Flow Direct Conversion Materials Costs Total units accounted for Work completed Cost Information Costs to account for: Direct Conversion Total Materials Costs Total costs to account for Cost per equivalent unit Costs accounted for: 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.
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