The Bottling department of Soft Drink Company has the following production and manufacturing cost data for June 2022. All materials are added at the beginning of the process. Manufacturing Costs Beginning work in process Materials Conversion Costs Total Cost of beginning work in process Cost Incurred During Production in June Materials Labor Overhead Total cost incurred during production in June Production Data Beginning work in process Units started Units transferred out Ending work in process 17,500 units 48,500 53,000 9,500 1/5 complete $22,000 16,250 $38,250 202,000 71,125 59875 $333,000 Prepare a production cost report for The Bottling department for the month of June?
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.
Step by step
Solved in 3 steps
