The accountant at Rogers Advantage needs to close the books at the end of July, using the following information. Direct materials are added at the start of production. Conversion costs are incurred evenly throughout production. Inspection occurs when production is 70% completed. Normal spoilage is 14,500 units per month. Physical Units Work in process, beginning (30% complete) Started during the month Total units to account for Good units completed and transferred out during the current period From beginning work in process Started and completed Total goods completed Spoiled units Work in process, ending (60% complete) Total units accounted for Costs Beginning inventory Direct materials Conversion costs Total beginning inventory Costs added during current period: Direct materials ion costs Total costs to account for Required: Prepare a process cost report using the weighted average method. 32,000 158,000 190,000 32,000 100,000 132,000 16,000 42,000 190,000 $420,000 80,000 500,000 2,880,000 1,964,00 5,344,000
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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