Using the FIFO Costing: 1. How much is the cost of the received and completed? 2. What is cost per unit of the completed and transferred? 3. What is the total cost of the units in process June 30? 4. What is the equivalent units of production? 5. What is the total cost added the In process end?
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.
Crowley processes its product in three consecutive departments, A, B, and C. The following data re given on the third department's production for June 2016.
Quantity data:
In process, June 1 (4/5 completed) 5,000 units
Transferred in 22,000 units
In process, June 30 (1/4 incomplete) 8,000 units
Cost data:
In process, June 1 P 30,610
Transferred in 110,000
Cost added in June
Materials 15,750
Labor 8,400
Overhead 6,300
Using the FIFO Costing:
1. How much is the cost of the received and completed?
2. What is cost per unit of the completed and transferred?
3. What is the total cost of the units in process June 30?
4. What is the equivalent units of production?
5. What is the total cost added the In process end?
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