Tierney Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigned Job Month Number April May June Completed 10 $5,700 $5,900 May 11 5,800 5,400 $3,000 June 12 1,500 April 13 4,900 5,300 June 14 7,000 3,700 Not complete Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month following completion What is the balance in Work in Process Inventory at the end of each month? Work in Process Inventory April 30 $ May 31 24 June 30 $4 LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE What is the balance in Finished Goods Inventory at the end of each month? Finished Goods Inventory April 30 May 31 $4 June 30 2$
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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