20. JYD Company uses two departments to produce a detergent. It uses the weighted average rocess costing and has just completed the production for the month of April. Relevant data for its two epartments follow: Mixing Department Finishing Department Quantity Work in process, beg Stage of completion Started in process Transferred to next department Work in process-End Stage of completion 1,000 50% 900 50% 3,000 3,500 -0- 3,800 500 600 20% 50% Cost data In process beg Cost from preceding dept P1,130 1,800 3,200 2,000 Materials P800 1,200 1,000 Labor Overhead Current cost Cost from preceding dept P2,800 4,200 3,320 P ? 5,580 5,000 2,100 Materials Labor Overhead he cost of Work in process-End in Mixing Department is
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.
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