The following information is available for Twinny Corporation for the month of Ma: Started in process units 320,000 WIP beginning (40% complete) 30,000 Normal spoilage(discrete) 4,400 Abnormal spoilage 3,600 WIP ending(70% complete) 52,000 Completed and transferred out 290,000 Cost data WIP beginning cost: Materials 41,600 Conversion 55,200 Current cost: Materials 480,000 Conversion 1,400,000 All materials are added at the start of the process and the inspection point is at the end of the process. Required: Prepare a cost of production report using FIFO and Weighted Average Method. (Use five decimal places to compute the unit cost
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 following information is available for Twinny Corporation for the month of Ma:
Started in process units 320,000
WIP beginning (40% complete) 30,000
Normal spoilage(discrete) 4,400
Abnormal spoilage 3,600
WIP ending(70% complete) 52,000
Completed and transferred out 290,000
Cost data
WIP beginning cost:
Materials 41,600
Conversion 55,200
Current cost:
Materials 480,000
Conversion 1,400,000
All materials are added at the start of the process and the inspection point is at the end of the process.
Required: Prepare a cost of production report using FIFO and Weighted Average Method. (Use five decimal places to compute the unit cost).
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