Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Direct Materials Conversion Percent Percent Complete 100% Complete 80% Units Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory 61,000 858,000 730,000 189,000 100% 60% Beginning work in process inventory $ 418,145 147,595 Direct materials Conversion $ 565,740 Costs added this period Direct materials 2,798,355 2,804,305 5,602,660 $ 6,168,400 Conversion Total costs to account for
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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Victory Company uses weighted average process costing. The company has two production processes.
Conversion cost is added evenly throughout each process. Direct materials are added at the beginning
of the first process. Additional information for the first process follows.
Direct
Materials
Conversion
Percent
Percent
Units
Complete
Complete
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory
61,000
858,000
730,000
189,000
100%
80%
100%
60%
Beginning work in process inventory
$ 418,145
147,595
Direct materials
Conversion
$ 565,740
Costs added this period
Direct materials
2,798,355
5,602,660
$ 6,168,400
Conversion
2,804,305
Total costs to account for](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2F14f7a7d1-cfa7-4a6a-a85e-4a1444869cbb%2Fd2zmlje_processed.jpeg&w=3840&q=75)
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