The following information was taken from the books of Hunza Manufacturing Company forthe month of January 2016 Cost of Units in process at beginning: January 1, 2016 Rs. 50,000 Cost of Raw Material used 148,000 115,200 86,400 Direct Labour cost incurred Factory Overhead Cost incurred The data extracted from the production report relating to above process are as follows: Units in process at beginning of January [40% complete as to material and 60% complete as to conversion cost] Units placed in production during January Units in process at end of January 31 [60% complete as to material and 80% as to conversion cost] Assume FIFO 5,000 units 13,000 units 3,000 units. Equivalent Production Unit, Unit Cost, The total cost of unit completed and Work in process at end. а. b. с.
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 information wastaken from the books of Hunza Manufacturing Company
forthe month of January 2016
Cost of Units in process at beginning: January 1, 2016
Cost of Raw Material used
Rs.
50,000
148,000
115,200
86,400
Direct Labour costincurred
Factory Overhead Cost incurred
The data extracted from the production report relating to above process are as follows:
Units in process at beginning of January
[40% complete as to material and 60% complete as to conversion cost]
Units placed in production during January
Unitsin process at end of January 31
[60% complete as to material and 80% as to conversion cost]
5,000 units
13,000 units
3,000 units.
Assume FIFO
Equivalent Production Unit, Unit Cost,
The total cost ofunit completed and
Work in process at end.
a.
b.
с.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe53f6c6b-b57a-471a-bf5d-7344df5d0068%2Fa66f56cb-a582-4042-9dc7-0bb3fa2789a2%2Fx5s7d8u_processed.png&w=3840&q=75)
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