The cutting department of Blossom Manufacturing has the following production and cost data for July. Production 1. Completed and transferred out 12,350 units. 2. 2,600 units in ending work in process inventory are 60% complete in terms of conversion costs and 100% complete in terms of materials at July 31. Costs Beginning work in process Direct materials Direct labour Manufacturing overhead $-0- 44,850 15,500 15,102 Materials are entered at the beginning of the process. Conversion costs are incurred uniformly throughout the process.
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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