Units Completion Cost Work in process inventory: December 1 12,000 60% $140,400 December 31 5,000 40% Started in December: 14,000 Direct materials cost 106,400 Conversion cost 70,310 Completed in December 21,000 Prepare Austin's Department A cost of production report for December. If required, round your cost per equivalent unit amounts to two decimal places. Round all other amounts to the nearest dollar. If an amount value is zero enter "0" as answer. Austin Company Cost of Production Report-Department A For the Month Ended December 31 Equivalent Units UNITS Whole Units Direct Materials Conversion Units charged to production: Inventory in process, December 1 Received from materials storeroom Total units accounted for by Dept. A Units to be assigned costs: Inventory in process, Dec. 1 (60% completed) Started and completed in December Transferred to Dept. B in December Inventory in process, Dec. 31 (40% complete) Total units to be assigned costs
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
