The unit costs per EUP computed under weighted average were as follows: Materials, P 7 Conversion costs, P21 Transferred in, P35 Materials are introduced at the beginning of the process in the 2nd of three departments. There were 4,000 units (40% complete as to conversion costs) in process at the end of the month while 20,000 were transferred to the next department. The total costs to be accounted for is
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 unit costs per EUP computed under weighted average were as follows:
Materials, P 7
Conversion costs, P21
Transferred in, P35
Materials are introduced at the beginning of the process in the 2nd of three departments. There were 4,000 units (40% complete as to conversion costs) in process at the end of the month while 20,000 were transferred to the next department.
The total costs to be accounted for is
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