The following information concerns production in the Baking Department for December. All d materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department Date Dec. Item 1 Bal., 8,400 units, 2/3 completed 31 Direct materials, 151,200 units 31 Direct labor 31 Factory overhead 31 Goods finished, 153,300 units 31 Bal., ? units, 4/5 completed Debit 287,280 78,200 43,992 Inventory in process, December 1 Credit 404,110 ACCOUNT NO. Whole Units Balance Debit a. Determine the number of units in work in process inventory at December 31. units 10,640 297,920 376,120 420,112 16,002 16,002 b. Determine the equivalent units of production for direct materials and conversion costs in December. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For December Credit Equivalent Units Direct Materials Equivalen Units Conversia
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.
Equivalent Units of Production
The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production.
| ACCOUNT Work in Process—Baking Department | ACCOUNT NO. | |||||||
| Date | Item | Debit | Credit | Balance | ||||
| Debit | Credit | |||||||
| Dec. | 1 | Bal., 8,400 units, 2/3 completed | 10,640 | |||||
| 31 | Direct materials, 151,200 units | 287,280 | 297,920 | |||||
| 31 | Direct labor | 78,200 | 376,120 | |||||
| 31 | Factory |
43,992 | 420,112 | |||||
| 31 | Goods finished, 153,300 units | 404,110 | 16,002 | |||||
| 31 | Bal., ? units, 4/5 completed | 16,002 |
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