Kant Mfg uses process costing for their production. In September, they had the following production data from their first department: Materials Released Into Production: $300,000 Direct Labor Hours: 15,000 Direct Labor Rate: $20.00 Applied Overhead Rate: $2.00/DL Cost Kant uses normal costing and applies overhead based on direct labor cost. Beginning WIP Units Completed Units 150,000 275,000 % Complete 80,000 25% 100% Costs Ending WIP Required: Calculate equivalent units of production for September. Calculate the unit cost for September. Calculate the value of units transferred out of the department for September. Calculate the ending WIP for September. 30% $200,000
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.
Ef 254.
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