Eppich Corporation has provided the following data for the most recent month: Raw materials, beginning balance Work in process, beginning balance Finished Goods, beginning balance $18,500 $32,000 $50,000 Transactions: (1) Raw materials purchases (2) (3) (4) Manufacturing overhead costs incurred (5) Manufacturing overhead applied $ 79,500 $ 77,500 $ 52,000 $ 90,500 $ 72,000 Raw materials used in production (all direct materials) Direct labor ( 6 ) Cost of units completed and transferred from Work in $190,000 Process to Finished Goods ( 7) Any overapplied or underapplied manufacturing overhead is closed to Cost of Goods Sold ? (8) Finished goods are sold $220,500 Required: Complete the following T-accounts by recording the beginning balances and each of the transactions listed above.
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.
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