Thrifty Trailers' job cost records yielded the following information: 1(Click the icon to view the job cost information.) Use the dates above to identify the status of each job. Compute the following balances for Thrifty: a. Work-in-Process Inventory at August 31 b. Finished Goods Inventory at August 31 c. Cost of Goods Sold for August
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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Job
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|
Date
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|
Total Cost of Job
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Status of Job at
|
|
No.
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Started
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Finished
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Sold
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at August 31
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August 31
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1
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July 21
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August 16
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August 17
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$3,500
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(1)
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2
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July 29
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August 21
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August 26
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13,900
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(2)
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3
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August 3
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September 11
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September 13
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6,900
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(3)
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4
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August 7
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August 29
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September 1
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4,200
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(4)
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Job
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Cost
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(5)
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(6)
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Total
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Job
|
Cost
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(7)
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(8)
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|
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Total
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|
|
Job
|
Cost
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|
(9)
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|
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(10)
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Total
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Date
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Job No.
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Started
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Finished
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Sold
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Total Cost of Job at August 31
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|---|---|---|---|---|
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Job No. 1
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July 21
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August 16
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August 17
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$3,500
|
|
Job No. 2
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July 29
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August 21
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August 26
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13,900
|
|
Job No. 3
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August 3
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September 11
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September 13
|
6,900
|
|
Job No. 4
|
August 7
|
August 29
|
September 1
|
4,200
|
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