The following information is regarding the first process for the month of November. a. All manufacturing costs were added uniformly. b. Beginning work in process had 10,000 units, 40% complete. Costs in beginning work in process inventory included direct materials, 550,000 conversion costs, $48,500, c. During November, 40,000 units were started. Costs added to production were direct materials $90,000, and conversion costs $164,140 d. There were 38,000 good units transferred out and 11,800 units remained in ending work in process, 50% complete e. All units were inspected at the 90% point of completion. t. The weighted average method is used. Required: 1. Prepare the unit information of the production report for the first process at the end of the month. 2. Compute the unit cost. 3. Compute the cost transferred out assuming all spoilage is considered normal.
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.
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