Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January. Use the average cost method with the following data:Work in process, January 1, 3,400 units, 75% completed $ 23,000Materials added during January from Weaving Department, 64,000 units 366,200Direct labor for January 105,100Factory overhead for January 80,710Goods finished during January (includes goods in process, January 1), 63,500 units —Work in process, January 31, 3,900 units, 10% completed —
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.
Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January. Use the average cost method with the following data:
Work in process, January 1, 3,400 units, 75% completed $ 23,000
Materials added during January from Weaving Department, 64,000 units 366,200
Direct labor for January 105,100
Factory
Goods finished during January (includes goods in process, January 1), 63,500 units —
Work in process, January 31, 3,900 units, 10% completed —
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