ACCOUNT Work in Process-Finishing Department ACCOUNT NO. Balance Debit Credit Debit Credit Date Item 1 Bal., 4, 200 units, 70% completed Direct materials, 23,600 units Direct labor 36,500 May 125,800 31 162,300 31 75,400 237,700 Factory overhead 31 82,675 320,375 31 Goods transferred, 24,700 units 308,750 11,625 31 Bal., ? units, 30% completed 11,625
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.
The following information concerns production in the Finishing Department for May. The Finishing Department uses the average cost method.
Attachment
a. Determine the number of units in work in process inventory at the end of the month.
b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for May.
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