3. Following data for September were taken from the cost records of the Mixing Department of Tacloban Company which uses the average costing method: WIP, August 31 (100% complete as to materials, 50% complete as to 1,000 units conversion cost Put into process during the month WIP, September 30 (100% complete as to materials. 60% as to conversion 1,400 units costs) 10,000 units COSTS: WIP, August 31 Materials Labor Overhead P 24,000 15,000 7,600 Put into process during the month Materials Labor Overhead P 251,000 193,800 149,000 a. The total cost of the units completed and transferred to the next department was: b. Compute the total cost of the WIP on September 30.
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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