Millie Company produces a product that passes through an assembly process and a finish- ing process. All manufacturing costs are added uniformly for both processes. The following information was obtained for the assembly department for June: a. WIP, June 1, had 24,000 units (60% completed) and the following costs: Direct materials s186,256 Direct labor 64,864 Overhead applied 34,400 b. During June, 70,000 units were completed and transferred to the finishing department, and the following costs were added to production: Direct materials Direct labor $267,880 253,000 Overhead applied 117,600 c. On June 30, there were 10,000 partially completed units in process. These units were 70% complete.
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.
Weighted Average Method, Single-Department Analysis
Refer to the information for Millie Company above.
Required:
Prepare a production report for the assembly department for June using the weighted average
method of costing. The report should disclose the physical flow of units, equivalent units, and
unit costs and should track the disposition of
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