Sue's Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Canning Department. Work in process inventories are reduced to zero each month. In March, the Mixing and Cooking Department incurred manufacturing costs of $43,200 to mix 36,000 gallons of soup. The Canning Department incurred manufacturing costs of $5,000. A total of 100,000 cans of soup were transferred to the finished goods warehouse during the month. The unit cost per can of soup transferred to the finished goods warehouse during March was: Multiple Choice $0.48. $1.19. $1.20. $1.34.
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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Sue's Soup Products uses a
The unit cost per can of soup transferred to the finished goods warehouse during March was:
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$0.48.
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$1.19.
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$1.20.
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$1.34.
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