The Mixing Department of Today's Foods had 50,000 equivalent units of materials for October. Of the 50,000 units, 30,000 units were completed and transferred to the next department, and 20,000 units were 30% complete. Today's Foods's costs per equivalent unit of production are $1.04 for direct materials and $0.60 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the weighted-average method. Calculate the cost of the 30,000 units completed and transferred out and the 20,000 units, 30% complete, in the ending Work-in-Process Inventory. COSTS Costs accounted for: Today's Foods Production Cost Report - Mixing Department (Partial) Month Ended October 31 Direct Materials Completed and transferred out Ending work-in-process Total costs accounted for Conversion Costs Total Costs
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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