XYZ Corporation uses a process costing system to collect costs related to the production of its ice-cream flavored cola. The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to XYZ’s two departments for the month of January: Mixing Bottling Cases of cola in work in process, January 1................................... 25,000 9,000 Cases of cola completed/transferred out during January.......................... 110,000 ? Cases of cola in work in process, January 31................................. 7,000 19,000 How many cases of cola were completed and transferred to Finished Goods Inventory during January?
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.
XYZ Corporation uses a
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Mixing |
Bottling |
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Cases of cola in work in process, January 1................................... |
25,000 |
9,000 |
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Cases of cola completed/transferred out during January.......................... |
110,000 |
? |
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Cases of cola in work in process, January 31................................. |
7,000 |
19,000 |
How many cases of cola were completed and transferred to Finished Goods Inventory during January?
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