Total Total Cost of Job at Manufacturing Costs Added in November Date Job No. Started Finished Sold October 31 $ 1,300 10/03 10/12 10/13 10/03 10/30 11/01 1,400 3. 10/17 11/24 11/27 1,000 $ 900 10/29 11/29 12/03 1,200 1,200 11/08 11/12 11/14 650 11/23 12/06 12/09 500
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.
Analyzing cost data, recording completion and sales of jobs
Clement Manufacturing makes carrying cases for portable electronic devices. Its costing records yield the following information:
Requirements
- Which type of costing system is Clement using? What piece of data did you base your answer on?
- Use the dates in the table to identify the status of each job at October 31 and November 50. Compute Clements account balances at October 31 for Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. Compute, by job, account balances at November 30 for Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.
- Prepare
journal entries to record the transfer of completed jobs from Work-in-Process Inventory to Finished Goods Inventory for October and November. - Record the sale of job 3 for $2,300 on account.
- What is the gross profit for Job 3?
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