Cost of Production Summary, One Department; Beginning Work in Process Dublin Brewing Co. uses the process cost system. The following data, taken from the organization's books, reflect the results of manufacturing operations during October: Production Costs:- Work in process, beginning of period: Materials $ 2,600 Labor $ 2,300 Factory overhead $ 1,000 Total: $ 5,900 Costs incurred during month: Materials $10,000 Labor...........................................................................$ 7,500 Factory overhead $ 6,000 Total $ 23,500 Total $ 29,400 Production Report Units:- Finished and transferred to stockroom during month 13,000 Units Work in process, end of period, one-half completed 2,000 Units Required:- Prepare a cost of production summary for October
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.
Problem:-
Cost of Production Summary, One Department; Beginning Work in Process Dublin Brewing Co. uses the
Production Costs:-
Work in process, beginning of period:
Materials $ 2,600
Labor $ 2,300
Factory overhead $ 1,000 Total: $ 5,900
Costs incurred during month:
Materials $10,000
Labor...........................................................................$ 7,500
Factory overhead $ 6,000 Total $ 23,500
Total $ 29,400
Production Report Units:-
Finished and transferred to stockroom during month 13,000 Units
Work in process, end of period, one-half completed 2,000 Units
Required:-
Prepare a cost of production summary for October.
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