UNITS Beginning Work-in-Process Inventory 60 rolls Transferred in from Spinning Department during November 575 rolls Completed during November Ending Work-in-Process (80% complete for conversion work) 500 rolls 135 rolls COSTS Beginning Work-in-Process Inventory (transferred in costs, $4,600; materials cost, $1,650; conversion costs, $5,250) 11,500 Transferred in from Spinning Department 22,070 Materials cost added during November Conversion costs added during November (manufacturing wages, $8,575; manufacturing overhead allocated, $43,935) 12,320 52,510 %24
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.
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 Novemver 2018 follows :
Requirement 1. Prepare the November production cost report for Carrie's Dyeing Department. The company uses the weighted -average method (Round all cost per unit amounts to the nearest and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units production.)
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