At the High Quality GAYUMA Corp., operated by A.E. Cabug, the process begins with the blending of various chemicals and ends with the bottling of GAYUMA product after which the bottles are sent to the shipping department for packing and crating. Labor and overhead are continuously added during the processing. Overhead is applied at the rate of P30 per direct labor hour. Data for May follows: Work in process, beginning 4, 000 units Raw materials-chemicals (60% complete) Direct Labor (25% complete) Overhead (25% complete) Started in Process 21, 000 units Completed and transferred 20, 000 units Work in process, end Raw materials-chemicals (100% complete) Raw materials-bottles (60% complete) Direct labor (80% complete) Overhead (80% complete) Costs for May: Work in process, beginning Raw materials-chemicals P456, 000 Direct labor (P100 per hour) 62, 500 Overhead 18, 750 Current costs added Raw materials-chemicals P2, 284, 000 Raw materials-bottles 70, 000 Direct labor (P100 per hour) 330, 000 Overhead 105, 000 FIFO Method is used. How much is the total cost assigned to the units remained in ending work in process?
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.
At the High Quality GAYUMA Corp., operated by A.E. Cabug, the process begins with the blending of various chemicals and ends with the bottling of GAYUMA product after which the bottles are sent to the shipping department for packing and crating. Labor and overhead are continuously added during the processing. Overhead is applied at the rate of P30 per direct labor hour.
Data for May follows:
Work in process, beginning 4, 000 units
Raw materials-chemicals (60% complete)
Direct Labor (25% complete)
Overhead (25% complete)
Started in Process 21, 000 units
Completed and transferred 20, 000 units
Work in process, end
Raw materials-chemicals (100% complete)
Raw materials-bottles (60% complete)
Direct labor (80% complete)
Overhead (80% complete)
Costs for May:
Work in process, beginning
Raw materials-chemicals P456, 000
Direct labor (P100 per hour) 62, 500
Overhead 18, 750
Current costs added
Raw materials-chemicals P2, 284, 000
Raw materials-bottles 70, 000
Direct labor (P100 per hour) 330, 000
Overhead 105, 000
FIFO Method is used.
How much is the total cost assigned to the units remained in ending work in process?
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