The accounting and production records for the company show the following information: Work in Process, June 1 10,000 units (Direct materials 100% complete; labor & overhead 70% complete) Units started 60,000 units Work in Process, June 30 4,000 units (Direct materials 100% complete; labor & overhead 60% complete) SUMMARY OF COSTS – Work-in-Process Account: June 1, beginning inventory, materials $ 32,000 June 1, beginning inventory, labor & overhead $ 36,000 June, added costs: materials used $180,000 June, added costs: labor & overhead (conversion cost) $307,000 June 30, Work-in-Process Account balance: $555,000 COMPLETE PRODUCTION REPORT USING FIFO METHOD and then answer questions using your numbers A. Total cost of units transferred out B. Total cost of units in ending inventory
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.
The accounting and production records for the company show the following information:
Work in Process, June 1 10,000 units
(Direct materials 100% complete; labor &
Units started 60,000 units
Work in Process, June 30 4,000 units
(Direct materials 100% complete; labor & overhead 60% complete)
SUMMARY OF COSTS – Work-in-Process Account:
June 1, beginning inventory, materials $ 32,000
June 1, beginning inventory, labor & overhead $ 36,000
June, added costs: materials used $180,000
June, added costs: labor & overhead (conversion cost) $307,000
June 30, Work-in-Process Account balance: $555,000
COMPLETE PRODUCTION REPORT USING FIFO METHOD and then answer questions using your numbers
A. Total cost of units transferred out
B. Total cost of units in ending inventory
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