Assume process costing is used. Fill two tables given below. SHOW CALCULATIONS IN THE TABLE March April Beginning work in process was 20% complete in March and 65% complete in April. Ending work in process was 50% complete in March and 30% complete in April Direct materials costs $965,460 $1,100,310 Direct labor costs 2,300,260 3,001,940 Manufacturing overhead applied 3,520,640 3,601,030 Total manufacturing costs $6,786,360 $7,703,280 Units in beginning work in process 6,000 3,800 Units transferred to finished goods 17,500 22,000 Units in ending work in process 4,500 6,100 Express everything in UNITS March April Beginning work in process Started and completed Ending work in process Total equivalent units Express everything in $ March April Total manufacturing cost per equivalent unit Direct materials cost per equivalent unit
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.
- Assume
process costing is used. Fill two tables given below. SHOW CALCULATIONS IN THE TABLE
|
|
March |
April |
Beginning work in process was 20% complete in March and 65% complete in April. Ending work in process was 50% complete in March and 30% complete in April |
|
Direct materials costs |
$965,460 |
$1,100,310 |
|
|
Direct labor costs |
2,300,260 |
3,001,940 |
|
|
Manufacturing overhead applied |
3,520,640 |
3,601,030 |
|
|
Total |
$6,786,360 |
$7,703,280 |
|
|
Units in beginning work in process |
6,000 |
3,800 |
|
|
Units transferred to finished goods |
17,500 |
22,000 |
|
|
Units in ending work in process |
4,500 |
6,100 |
|
Express everything in UNITS |
March |
April |
|
Beginning work in process |
|
|
|
Started and completed |
|
|
|
Ending work in process |
|
|
|
Total equivalent units |
|
|
|
Express everything in $ |
March |
April |
|
Total manufacturing cost per equivalent unit |
|
|
|
Direct materials cost per equivalent unit
|
|
|
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