The Farmer Company produces an engine lubricant in one production department. In accounting for product costs, the company uses the weighted average method. During the month of January, 120,000 units (in gallons) were started. The following additional information is available: Units (in gallons) % complete with respect to Direct Material % complete with respect to Conversion Costs Work In Process Jan. 1 20,000 80% 60% Work In Process Jan. 31 15,000 45% 50% Direct Materials Direct Labor Applied MOH Costs included in WIP on Jan. 1 $56,000 $34,000 $12,000 Costs incurred during the period $425,750 $386,750 $76,500 What is the balance reported in Work in Process at the end of January? (Do not use a dollar sign and round your final answer to the nearest whole dollar...no decimals)
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 Farmer Company produces an engine lubricant in one production department. In accounting for product costs, the company uses the weighted average method. During the month of January, 120,000 units (in gallons) were started. The following additional information is available:
|
Units (in gallons) |
% complete with respect to Direct Material |
% complete with respect to Conversion Costs |
|
|
Work In Process Jan. 1 |
20,000 |
80% |
60% |
|
Work In Process Jan. 31 |
15,000 |
45% |
50% |
|
Direct Materials |
Direct Labor |
Applied MOH |
|
|
Costs included in WIP on Jan. 1 |
$56,000 |
$34,000 |
$12,000 |
|
Costs incurred during the period |
$425,750 |
$386,750 |
$76,500 |
What is the balance reported in Work in Process at the end of January?
(Do not use a dollar sign and round your final answer to the nearest whole dollar...no decimals)
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