The mixing department of Sunny Delights Company uses two processes, Blending and Cooking. The following information pertams to the Blending Department for March. Units Beginning WIP Started in production in February Transferred out in February Ending WIP: Units Percent Complete: Direct materials Conversion costs Costs Beginning WIP Direct materials costs 10,000 50,000 40,000 #1-4 Required: Prepare a Production Cost Report ??? 100% 15% $9,000 $ 10,300 $141.000 Conversion costs Direct materials costs added in July Conversion costs added in July Direct labor $50,000 Manufacturing overhead allocated $30.000 Total conversion costs added $80.000 ENG
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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