- The production amount information for the June period of ABC production company, which calculates the production costs according to the phase cost system and realizes the production in 2 phases, is as follows: Phase 1 Semi Finished Amount at the Beginning of the Period: 2.000 tons Amount Taken into Production During the Period: 5,000 tons Amount Completed in the Period: 4.000 tons Amount of Semi-finished Products at the End of the Period: 3.000 tons According to the information above, what is the amount of semi-finished products at the beginning of the 2nd phase? a) 7,000 tons B) 4,000 tons NS) 5,000 tons D) 3,000 tons TO) 2,000 tons
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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The production amount information for the June period of ABC production company, which calculates the production costs according to the phase cost system and realizes the production in 2 phases, is as follows:
Phase 1
Semi Finished Amount at the Beginning of the Period: 2.000 tons
Amount Taken into Production During the Period: 5,000 tons
Amount Completed in the Period: 4.000 tons
Amount of Semi-finished Products at the End of the Period: 3.000 tons
According to the information above, what is the amount of semi-finished products at the beginning of the 2nd phase?
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