Exercise 16-17 (Algo) Weighted average: Production cost report LO P2 Oslo Company produces large quantities of a standardized product. The following information is available for the first production department for May. Prepare a production cost report for this process using the weighted average method. (Round "Cost per EUP" to 2 decimal places.) Direct MaterialsConversion Percent Percent Units Complete Complete Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory 6,300 23,500 22,200 7,600 100% 40% Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials $ 5,258 11,568 $ 16,826 401,590 497,192 Conversion 898,782 $ 915,608 Total costs to account for
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.
Equivalent unit express in terms of number of partially completed unit has smaller unit that is fully completed. This is an important concept in cost accounting and it is used in the process costing for calculation of cost.
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