The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning inventory -0- Units started in production 20,500 Units finished during the period 16,400 Units in process at the end of the period (complete as to materials, ¼ complete as to labor and overhead) 4,100 Cost of materials used $ 36,000 Labor and overhead costs $ 38,000 Equivalent units of production for materials 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 Lakeside Company uses a weighted-average
| Beginning inventory | -0- | ||
| Units started in production | 20,500 | ||
| Units finished during the period | 16,400 | ||
| Units in process at the end of the period (complete as to materials, ¼ complete as to labor and overhead) |
4,100 |
||
| Cost of materials used | $ | 36,000 | |
| Labor and overhead costs | $ | 38,000 | |
Equivalent units of production for materials are:
-
17,400.
-
20,500.
-
16,400.
-
19,500.
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