North Country Wood Toys makes wooden toys for children of all ages. They use two departments: Cutting and Assembly. Toy pieces cut into formed shapes are transferred in from the Cutting Department at the beginning of the Assembly Departments process. The Assembly Department's conversion costs are added evenly throughout the process, while the Direct Materials are added at the end of the process (boxes). A review of the cost information for October shows: North Country Wood Toys Cutting Dept. Assembly Dept. UNITS Beginning WIP 0 5,100 Started in Production 52,000 to be calculated Transferred out in October 41,200 39,200 Beginning WIP - % complete 60% Ending WIP - % complete 20% 30% COSTS Beginning WIP - Transferred in costs $0.00 $21,500.00 Beginning WIP - Materials costs $0.00 $0.00 Beginning WIP - Conversion Costs $0.00 $1,200.00 Direct Materials $132,000.00 $20,400.00 Conversion costs: Direct Labor $21,600.00 $4,160.00 Manufacturing Overhead $48,100.00 $11,400.00 Total Conversion Costs $69,700.00 $15,560.00 Total Costs of Units Transferred to Assembly $186,000.00 Complete the production cost report for the Assembly Department. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).
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.
North Country Wood Toys makes wooden toys for children of all ages. They use two departments: Cutting and Assembly. Toy pieces cut into formed shapes are transferred in from the Cutting Department at the beginning of the Assembly Departments process. The Assembly Department's conversion costs are added evenly throughout the process, while the Direct Materials are added at the end of the process (boxes).
A review of the cost information for October shows:
| North Country Wood Toys | Cutting Dept. | Assembly Dept. |
|---|---|---|
| UNITS | ||
| Beginning WIP | 0 | 5,100 |
| Started in Production | 52,000 | to be calculated |
| Transferred out in October | 41,200 | 39,200 |
| Beginning WIP - % complete | 60% | |
| Ending WIP - % complete | 20% | 30% |
| COSTS | ||
| Beginning WIP - Transferred in costs | $0.00 | $21,500.00 |
| Beginning WIP - Materials costs | $0.00 | $0.00 |
| Beginning WIP - Conversion Costs | $0.00 | $1,200.00 |
| Direct Materials | $132,000.00 | $20,400.00 |
| Conversion costs: | ||
| Direct Labor | $21,600.00 | $4,160.00 |
| Manufacturing |
$48,100.00 | $11,400.00 |
| Total Conversion Costs | $69,700.00 | $15,560.00 |
| Total Costs of Units Transferred to Assembly | $186,000.00 |
Complete the production cost report for the Assembly Department.
(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
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