The following data reports on the July production activities of the Molding department at Ash Company. Beginning work in process Direct materials $ 28,450 Conversion 3,180 $ 31,630 Costs added this period Direct materials 358,450 Conversion 182,850 541,300 Total costs to account for $ 572,930 Units Direct Materials Conversion Percent Complete Percent Complete Beginning work in process inventory 3,000 100% 20% Units started this period 33,500 Completed and transferred out 33,000 Ending work in process inventory 3,500 100% 60% Prepare the Molding department’s production cost report using the weighted average method. (Round "Cost per EUP" to 2 decimal places.)
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 following data reports on the July production activities of the Molding department at Ash Company.
| Beginning work in process | ||
|---|---|---|
| Direct materials | $ 28,450 | |
| Conversion | 3,180 | $ 31,630 |
| Costs added this period | ||
| Direct materials | 358,450 | |
| Conversion | 182,850 | 541,300 |
| Total costs to account for | $ 572,930 |
| Units | Direct Materials | Conversion | |
|---|---|---|---|
| Percent Complete | Percent Complete | ||
| Beginning work in process inventory | 3,000 | 100% | 20% |
| Units started this period | 33,500 | ||
| Completed and transferred out | 33,000 | ||
| Ending work in process inventory | 3,500 | 100% | 60% |
Prepare the Molding department’s production cost report using the weighted average method. (Round "Cost per EUP" to 2 decimal places.)
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