Colby Company has a process costing system in which the weighted-average method is used. The company adds all materials at the beginning of the process in the moulding department, which is the first of two stages of its production process. Information concerning the materials used in the moulding department during March is as follows: Units Materials costs Work in progress at March 1 22,000 € 15,480 Units started during March 90,000 € 46,120 Units completed and transferred to next department during March 100,000 What was the materials cost of the work-in-progress inventory at March 31? a) € 1,100 b) € 5,500 c) € 6,600 d) €12,100
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.
4.Colby Company has a
Units Materials costs
Work in progress at March 1 22,000 € 15,480
Units started during March 90,000 € 46,120
Units completed and transferred to
next department during March 100,000
What was the materials cost of the work-in-progress inventory at March 31?
a) € 1,100
b) € 5,500
c) € 6,600
d) €12,100
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