Sunland Company has the following production data for March 2022: no beginning work in process inventory, 27,900 units started and completed, and 5,360 units in ending work in process inventory that are 100% complete for materials and 40% complete for conversion costs. Mora uses the FIFO method to calculate equivalent units of production. Unit materials cost is $9 and unit conversion cost is $13. The total costs to be assigned are $689,912. (a) Calculate the costs to be assigned to the units completed and transferred out and the units in ending work in process inventory. Cost of units completed and transferred out $ Cost units in ending work in process inventory $ (b) Prepare the cost section of the production cost report for Sunland Company.
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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