PART III—DETERMINE WORK IN PROCESS AND FINISHED GOODS BALANCES Hanover Manufacturing begins operations on April 1. Information from job cost sheets shows the following: Manufacturing Costs Assigned (non-cumulative) Job April May June 15$10,200 16 5,100$6,400 18 3,6005,900$4,000 197,3007,400 203,100 Job 15 was completed in April. Job 16 was completed in May. Job 18 was completed in June. Each job was sold in the month following completion. Instructions: Determine the following amounts: 1.Work in process inventory, April 30$_______________ 2.Finished goods inventory, April 30$_______________ 3.Work in process inventory, May 31$_______________ 4.Finished goods inventory, May 31$_______________ 5.Work in process inventory, June 30$_______________ 6.Finished goods inventory, June 30$_______________
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.
PART III—DETERMINE WORK IN PROCESS AND FINISHED GOODS BALANCES
Hanover Manufacturing begins operations on April 1. Information from
Job April May June
15$10,200
16 5,100$6,400
18 3,6005,900$4,000
197,3007,400
203,100
Job 15 was completed in April. Job 16 was completed in May. Job 18 was completed in June. Each job was sold in the month following completion.
Instructions: Determine the following amounts:
1.Work in process inventory, April 30$_______________
2.Finished goods inventory, April 30$_______________
3.Work in process inventory, May 31$_______________
4.Finished goods inventory, May 31$_______________
5.Work in process inventory, June 30$_______________
6.Finished goods inventory, June 30$_______________
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