The Ilang-ilang Corporation, engaged in manufacturing business uses process costing, and gave us the following production data from three different situations. Stages of completion of inventories apply to all cost elements. Started in Process, 6,500 units; completed, 5,500 units; in process, end, 400 units 50% completed and 600 units 25% completed. Beginning Inventory, 6,250 units 40% completed; started in process, 25,000 units; completed, 26,250 units; in process at the end, 3,000 units 50% completed Beginning Inventory, 6,000 units, 30% completed; started in process, 13,000 units; lost in process, 500 units from production started this period (loss was normal and occurred throughout the production process); completed 14,000 units; in process at the end of the period, 3,000 units, 50% completed and 1,500 units, 75% completed. Using the FIFO costing, the eup for Case A, Case B, and Case C are _______
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 Ilang-ilang Corporation, engaged in manufacturing business uses
Started in Process, 6,500 units; completed, 5,500 units; in process, end, 400 units 50% completed and 600 units 25% completed.
Beginning Inventory, 6,250 units 40% completed; started in process, 25,000 units; completed, 26,250 units; in process at the end, 3,000 units 50% completed
Beginning Inventory, 6,000 units, 30% completed; started in process, 13,000 units; lost in process, 500 units from production started this period (loss was normal and occurred throughout the production process); completed 14,000 units; in process at the end of the period, 3,000 units, 50% completed and 1,500 units, 75% completed.
Using the FIFO costing, the eup for Case A, Case B, and Case C are _______
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