ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Debit Debit Credit Credit Date Item Bal., 18,000 units, 4 completed 31 Direct materials, 336,000 units 31 Direct labor 31 Factory overhead 31 Goods finished, 330,000 units Bal. ? units, % completed 14,760 266,760 306,760 Mar. 1 252,000 40,000 60,530 367,290 346,410 20,880 20,880 31
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 Baking Department for March. All direct materials are placed in process at the beginning of production.
Attachment
a. Determine the number of units in work in process inventory at March 31.
b. Determine the equivalent units of production for direct materials and conversion costs in March.
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