Materials P 14,230 Units Conversion Costs Work in Process, beginning P 11,100 1,000 Started in Process Finished and Transferred 9,000 150 Abnormal Lost Units Work in Process, end Costs added in April Completion of Work in Process Materials 2,000 121,180 277,500 End Beginning 100% 50% 100% 30% Conversion Costs
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.
Compute the total units to be accounted for:
Consider the following date for April from Green manufacturing. Company which uses average costing. All direct materials are added at the beginning of the process, and conversion costs are added evenly during process. Lost units occur at the end of process
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
