Data for Finishing Department are as follows: Cost Data: Beginning Work in Process Costs Transferred In from Prior Dept 27,225 Costs Incurred in this Department: Materials 1,500 Labor 5,500 Overhead 4,500 Current Month Cost: Costs Transferred In from Prior Dept ?????? Costs Incurred in this Department: Materials 23,500 Labor 70,000 Overhead 75,000 Production Data: Quantity: Work in Process – Beginning 10,000 Started in Process 30,000 Transferred out to Next Department From Work in Process – Beginning 10000 Started and Completed 18,500 28,500 Work in Process – Ending 10,800 Lost Units – Normal 450 Abnormal Lost Units 250 Stage of Completion: Beginning Ending Transferred In Costs 100% 100% Materials 60% 55% Labor 60% 55% Overhead 60% 55% 1. Referring to Finishing Department, what is the total cost allocated to abnormal spoilage using the weighted-average method? 2. Referring to Finishing Department, what is the total cost allocated to abnormal spoilage using the FIFO method? 3. Referring to Finishing Department, what is the total cost allocated to ending work in process inventory using the weighted-average method? 4. Referring to Finishing Department, what is the total cost allocated to ending work in process inventory using the FIFO method? 5. Referring to Finishing Department, what is the total cost allocated to transferred out using the weighted-average method?
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.
Continuation..
Data for Finishing Department are as follows:
Cost Data:
| Beginning Work in Process | |
| Costs Transferred In from Prior Dept | 27,225 |
| Costs Incurred in this Department: | |
| Materials | 1,500 |
| Labor | 5,500 |
| 4,500 | |
| Current Month Cost: | |
| Costs Transferred In from Prior Dept | ?????? |
| Costs Incurred in this Department: | |
| Materials | 23,500 |
| Labor | 70,000 |
| Overhead | 75,000 |
Production Data:
| Quantity: | ||
| Work in Process – Beginning | 10,000 | |
| Started in Process | 30,000 | |
| Transferred out to Next Department | ||
| From Work in Process – Beginning | 10000 | |
| Started and Completed | 18,500 | 28,500 |
| Work in Process – Ending | 10,800 | |
| Lost Units – Normal | 450 | |
| Abnormal Lost Units | 250 | |
| Stage of Completion: | Beginning | Ending |
| Transferred In Costs | 100% | 100% |
| Materials | 60% | 55% |
| Labor | 60% | 55% |
| Overhead | 60% | 55% |
1. Referring to Finishing Department, what is the total cost allocated to abnormal spoilage using the weighted-average method?
2. Referring to Finishing Department, what is the total cost allocated to abnormal spoilage using the FIFO method?
3. Referring to Finishing Department, what is the total cost allocated to ending work in process inventory using the weighted-average method?
4. Referring to Finishing Department, what is the total cost allocated to ending work in process inventory using the FIFO method?
5. Referring to Finishing Department, what is the total cost allocated to transferred out using the weighted-average method?
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