Gallons O gallons 8,500 gallons Beginning Work-in-Process Inventory Started in production 6,500 gallons Completed and transferred out to Packaging in May Ending Work-in-Process Inventory (30% of the way through the blending process) 2,000 gallons Costs Beginning Work-in-Process Inventory Costs added during May: Direct materials 5,525 Direct labor 1,500 Manufacturing overhead allocated Total costs added during May 2,547 $ 9,572
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.
Computing EUP, assigning costs, no beginning WIP or costs transferred in
Color Explosion prepares and packages paint products Color Explosion has two departments Blending and Packaging Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans) Conservation costs are added evenly throughout each process The company uses the Weighted-average method Data from the month of May for the Blending Department are as follows;
Requirements
- Compute the Blending Departments equivalent units of production for direct materials and for conversion costs.
- Compute the total costs of the units (gallons)
a. completed and transferred out to the Packaging Department.
b. in the Blending Department ending Work-in-Process Inventory.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
