Units in process at the beginning of August 1,100 Units started in August 2,700 Units completed and transferred 3,400 Units in process at end of August 400
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.
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**Requirement:**
- Read the requirement for further details.
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**Scenario 1:**
- **Context:** Units in process at the end of August are 10% complete; materials are added at the beginning of the process.
**Production Cost Report - Assembly Department (Partial)**
- **Period:** Month Ended August 31
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**Report Table:**
- Columns:
- Physical Units
- Equivalent Units (Direct Materials)
- Equivalent Units (Conversion Costs)
**Units Accounted For:**
1. **Completed and Transferred Out**
- Physical Units: [Blank]
- Direct Materials: [Blank]
- Conversion Costs: [Blank]
2. **Ending Work-in-Process**
- Physical Units: [Blank]
- Direct Materials: [Blank]
- Conversion Costs: [Blank]
3. **Total Units Accounted For:**
- Physical Units: [Blank]
- Direct Materials: [Blank]
- Conversion Costs: [Blank]
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This table helps in assessing the production costs and the progress of units through the assembly process.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a02bef8-a0d7-4a40-b9a1-c34befda656f%2Fb89d8380-2ba8-4e8a-a3cf-9098005514ec%2Fv6b3u7q_processed.png&w=3840&q=75)
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