TB MC Qu. 8-83 (Algo) The debits to Work-in-Process for Department #2... The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,300 in process at the beginning of the period. Department #2 uses FIFO costing. WORK-IN-PROCESS - DEPARTMENT #2 1,300 units, ¼ completed $1,300 Product X, 6,400 units ???? From Dept. 1, 6,200 units 3,720 Direct Labor 8,100 Factory OH 5,000 1,100 units, ½ complete ???? What are the total costs to be accounted for on the production cost report for Department #2 for the period? Multiple Choice $11,900. $13,000. $16,880. $18,120.
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.
TB MC Qu. 8-83 (Algo) The debits to Work-in-Process for Department #2...
The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,300 in process at the beginning of the period. Department #2 uses FIFO costing.
| WORK-IN-PROCESS - DEPARTMENT #2 | |||
| 1,300 units, ¼ completed | $1,300 | Product X, 6,400 units | ???? |
| From Dept. 1, 6,200 units | 3,720 | ||
| Direct Labor | 8,100 | ||
| Factory OH | 5,000 | ||
| 1,100 units, ½ complete | ???? |
What are the total costs to be accounted for on the production cost report for Department #2 for the period?
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$11,900.
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$13,000.
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$16,880.
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$18,120.
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