I Can't Think of a Company Name (CTCN) manufacturers products. They had 6,200 physical units that were completed and transferred out to the next process, and 2,000 physical units remaining in work in progress at the end of the period. The unfinished units were 60% complete. Relevant cost information has been provided below: Beginning balance $28,000 Direct materials $16,000 Direct labor $9,000 Predetermined overhead rate $14 Actual machine hours 1,500 Based on the information provided, what is the value of the ending work in progress balance? Please round your answer to the nearest whole dollar.
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.
I Can't Think of a Company Name (CTCN) manufacturers products. They had 6,200 physical units that were completed and transferred out to the next process, and 2,000 physical units remaining in work in progress at the end of the period. The unfinished units were 60% complete. Relevant cost information has been provided below:
| Beginning balance | $28,000 |
| Direct materials | $16,000 |
| Direct labor | $9,000 |
| Predetermined |
$14 |
| Actual machine hours | 1,500 |
Based on the information provided, what is the value of the ending work in progress balance? Please round your answer to the nearest whole dollar.
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