Beginning work in process 10,000 units Units started 20,000 units Units completed 25,000 units Beginning work-in-process direct materials RM 6,000 Beginning work-in-process conversion RM 2,600 Direct materials added during month RM 30,000 Direct manufacturing labor during month RM12,000 Factory overhead RM 5,000 Beginning work in process was half converted as to labor and overhead. Direct materials are added at the beginning of the process. All conversion costs are incurred evenly throughout the process. Ending work in process was 60% complete as to labor and overhead. Required: Prepare a production cost worksheet using the weighted-average method. Include any necessary supporting schedules.
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.
Beginning work in process 10,000 units
Units started 20,000 units
Units completed 25,000 units
Beginning work-in-process direct
materials RM 6,000
Beginning work-in-process conversion RM 2,600
Direct materials added during month RM 30,000
Direct manufacturing labor during
month RM12,000
Factory overhead RM 5,000
Beginning work in process was half converted as to labor and overhead. Direct materials
are added at the beginning of the process. All conversion costs are incurred evenly
throughout the process. Ending work in process was 60% complete as to labor and
overhead.
Required:
Prepare a production cost worksheet using the weighted-average method. Include any
necessary supporting schedules.
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