Work in process, beginning: Units in process 10,000 Stage of completion with respect to materials 80% Stage of completion with respect to conversion 35% Costs in the beginning inventory: Materials cost $138,100 Labour cost $31,000 Overhead cost $19,000 Units started into production during the month 99,000 Units completed and transferred out 100,500 Costs added to production during the month: Materials cost $988,000 Labour cost $320,000 Overhead cost $155,000 Work in process, ending: Units in process ??? Stage of completion with respect to materials 90% Stage of completion with respect to conversion 60%
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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Production Report Jessica’s Car Supplies has three departments. Its first department (the Processing Department) shows the following data for the month of July:
QUESTION 3
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