The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Date Item August 1 Bal., 9,300 units, 3/5 completed 31 Direct materials, 167,400 units 31 Direct labor 31 Factory overhead 31 Goods finished, 169,500 units 31 Bal., ? units, 2/5 completed Total Debit Line Item Description 251,100 74,730 42,030 Inventory in process, August 1 Started and completed in August Transferred to finished goods in August Inventory in process, August 31 Credit a. Determine the number of units in work in process Inventory at August 31. units Whole Units 366,204 b. Determine the equivalent units of production for direct materials and conversion costs in August. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For August Balance Balance. Debit Credit 11,160 262,260 336,990 379,020 12,816 12,816 Equivalent Units Equivalent Direct Materials Units Conversion
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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