Eugene Products Co. produces a latex paint and uses the process cost system. Materials, labor, and overhead are added evenly throughout the process. The following information was obtained from the company's accounts at the end of February. Production Costs Costs Incurred during month: Materials 30,000 Labor 20,000 Factory overhead 40,000 90,000 Production Report Units Finished and transferred to stockroom during month 56,000 Work in process, end of period, one-fourth completed 16,000 Required: Prepare a cost of production summary for February. (round unit costs to the three decimal places.)
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.
Eugene Products Co. produces a latex paint and uses the process cost system. Materials, labor, and overhead are added evenly throughout the process. The following information was obtained from the company's accounts at the end of February.
Production Costs
Costs Incurred during month:
|
Materials
|
30,000
|
|
Labor
|
20,000
|
|
Factory overhead
|
40,000
|
|
|
90,000
|
|
Production Report
|
Units
|
|
Finished and transferred to stockroom during month
|
56,000
|
|
Work in process, end of period, one-fourth completed
|
16,000
|
Required:
Prepare a cost of production summary for February. (round unit costs to the three decimal places.)
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