The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000. The journal entry to record the transfer of costs from work in process to finished goods is a. Work in Process 540,000 Finished Goods 540,000 b. Finished Goods 540,000 Work in Process 540,000 c. Finished Goods 375,000 Work in Process 375,000 d. Work in Process 375,000 Finished Goods 375,000
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.
The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000. The
| Work in Process | 540,000 | |
| Finished Goods | 540,000 |
| Finished Goods | 540,000 | |
| Work in Process | 540,000 |
| Finished Goods | 375,000 | |
| Work in Process | 375,000 |
| Work in Process | 375,000 | |
| Finished Goods | 375,000 |
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