During July, the following costs were incurred: Materials (30,000 units) $24,900 Labour and overheads $20,075 At the beginning of July, there were 15,000 units of work in progress valued as follows: Materials (100% complete) $9,000 Labour and overheads (40% complete) $1,250 At the end of July, there were 5,000 units of work-in-progress. They were 100% complete for materials and 50% complete for labour and overheads. Using both FIFO approach and Weighted Average approach: (d) prepare a Process Account. (Note: assume no losses)
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.
During July, the following costs were incurred: Materials (30,000 units) $24,900 Labour and
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