eg 1,000 900 Stage of completion 50% 50% Started in process 3,000 -0- Transferred to next department 3,500 3,800 Work in process-End 500 600 Stage of completion 20% 50%
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.
JYD Company uses two departments to produce a detergent. It uses the weighted average
Mixing Department Finishing Department
Quantity
Work in process, beg 1,000 900
Stage of completion 50% 50%
Started in process 3,000 -0-
Transferred to next department 3,500 3,800
Work in process-End 500 600
Stage of completion 20% 50%
Cost data
In process beg
Cost from preceding dept - P1,130
Materials P800 1,800
Labor 1,200 3,200
Overhead 1,000 2,000
Current cost
Cost from preceding dept - P ?
Materials P2,800 5,580
Labor 4,200 5,000
Overhead 3,320 2,100
The cost of Work in process beginning in Dept X
Please provide an answer for the question mark. Thank you.
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