Units 65 rolls Beginning Work-in-Process Inventory Transferred in from Spinning Department during July Completed during July 570 rolls 520 rolls Ending Work-in-Process Inventory (80% complete for conversion work) 115 rolls Costs €11 080 Beginning Work-in-Process Inventory (transferred in costs, $3,900; materials costs, $1,625; conversion costs, $5,555) Transferred in from Spinning Department 19 595 Materials costs added during July Conversion costs added during July (manufacturing wages, $9,450; manufacturing overhead, $43,135) 9 805 52 585 Requirements 1. Prepare a production cost report for Carol's Dyeing Department for July. 2. Journalize all transactions affecting Carol's Dyeing Department during July, including the entries that have already been posted.
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.
Carol Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing. In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Information for July 2021 follows:
![Units
Beginning Work-in-Process Inventory
Transferred in from Spinning Department during July
Completed during July
Ending Work-in-Process Inventory (80% complete for conversion work)
65 rolls
570 rolls
520 rolls
115 rolls
Costs
Beginning Work-in-Process Inventory
€11 080
(transferred in costs, $3,900; materials costs, $1,625; conversion costs, $5,555)
Transferred in from Spinning Department
Materials costs added during July
19 595
9 805
Conversion costs added during July (manufacturing wages,
$9,450; manufacturing overhead, $43,135)
52 585
Requirements
1. Prepare a production cost report for Carol's Dyeing Department for July.
2. Journalize all transactions affecting Carol's Dyeing Department during July, including the entries that have
already been posted.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e8ab320-a83e-481a-973c-45196dab667b%2Fe76d47d2-7420-4967-abd4-74b6af31c2a6%2Fpc0qixo_processed.png&w=3840&q=75)
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