Wawa Company manufactures precision tool in two departments: molding and finishing. Wawa uses the weighted average method. Manufacturing costs are added uniformly throughout the process. The following are the cost and production data for the molding department for June: Table 1: Cost and Production Data for the Molding Department for June Production: Units in process June 1, 50% complete 15,000 Units completed and transfer out 102,000 Units in process, June 30, 60% complete 30,000 Costs: RM Work In Process, June 1 180,000 Cost added during June 3,420,000
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.
Wawa Company manufactures precision tool in two departments: molding and finishing. Wawa uses the weighted average method.
Table 1: Cost and Production Data for the Molding Department for June
|
Production: |
|
|
Units in process June 1, 50% complete |
15,000 |
|
Units completed and transfer out |
102,000 |
|
Units in process, June 30, 60% complete |
30,000 |
|
Costs: |
RM |
|
Work In Process, June 1 |
180,000 |
|
Cost added during June |
3,420,000 |
Required:
- Produce a production report for the molding department.
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