ethod. During April, the company had the following production data in the processing department: Work-in-Process Inventory, April 1 5,000 Units (60 percent complete) Direct materials: $40,000
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.
Tasty Fruit Bars Ltd. produces chocolate bars in a factory in Burlington, Ontario. Output is measured in number of bars. Materials are added at the beginning of the process in all departments. Tasty Fruit uses the weighted average method. During April, the company had the following production data in the processing department:
Work-in-Process Inventory, April 1
5,000 Units (60 percent complete)
Direct materials: $40,000
Conversion Cost: $55,000
During April, 90,000 units were completed and transferred to packaging department.
The following costs were incurred by the processing department during April:
Direct materials: $280,000
Conversion Cost: 265,000
At April 30, 15,000 units that were 20 percent complete remained in the processing department.
C. Determine the cost of goods transferred to the packaging department.
D. Determine the cost of April’s ending Work-in-Process Inventory for the processing department
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