PFISTER Corp. is a manufacturer of frames for metal cutting machines. Every frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at PFISTER has a single direct- cost category (DM) and a single indirect-cost category (CC). DM are added when the assembly department process is 20% complete. CC are added evenly during the assembly department`s process. Consider the following data for the assembly department in March 2021: units DM CC Work in process, March 1st¹ 55 11000 2050 Started during March 2021 540 Completed during March 2021 525 Work in process, March 31st² 70 Total costs added during March 193000 135000 ¹ Degree of completition: DM, 100% and CC, 30% 10% 30% ² Degree of completition: DM, 100% and CC, 40% 100% 40% Required: 1. Summarize the total assembly department costs for March 2021, and assign them to units completed (and transferred out) and to units in ending work in process using the Weighted-average method. 2. Summarize the total assembly department costs for March 2021, and assign them to units completed (and transferred out) and to units in ending work in process using the FIFO method.
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.
| PFISTER Corp. is a manufacturer of frames for metal cutting machines. Every frame passes | ||
| through two departments: the assembly department and the finishing department. This problem | ||
| focuses on the assembly department. The process-costing system at PFISTER has a single direct- | ||
| cost category (DM) and a single indirect-cost category (CC). DM are added when the assembly | ||
| department process is 20% complete. CC are added evenly during the assembly department`s | ||
| process. |
| Consider the following data for the assembly department in March 2021: | ||||
| units | DM | CC | ||
| Work in process, March 1st¹ | 55 | 11000 | 2050 | |
| Started during March 2021 | 540 | |||
| Completed during March 2021 | 525 | |||
| Work in process, March 31st² | 70 | |||
| Total costs added during March | 193000 | 135000 | ||
| ¹ Degree of completition: DM, 100% and CC, 30% | 10% | 30% | ||
| ² Degree of completition: DM, 100% and CC, 40% | 100% | 40% | ||
| Required: | ||||
| 1. Summarize the total assembly department costs for March 2021, and assign them to | ||||
| units completed (and transferred out) and to units in ending work in process using the | ||||
| Weighted-average method. | ||||
| 2. Summarize the total assembly department costs for March 2021, and assign them to | ||||
| units completed (and transferred out) and to units in ending work in process using the | ||||
| FIFO method. | ||||
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Solved in 6 steps with 6 images
so it doesnt matter in the:
DM are added when the ...... is 20% completed (like in the exercise written) ans the degree of completition is lower (like 10%) or higher (like 90%).
we always calculate it in the same way?
by Bartleby Expertwhat would be the difference if the
¹ Degree of completition: DM, were 10% instead of 100%
by Bartleby Expert
