Coca Cola manufacturers a standard juice. During February, the firm's Assembly Department started production of 75,000 boxes. During the month, the firm completed 85,000 boxes. and transferred them to the Finishing Department. The firm ended the month with 10,000 boxes. in ending inventory. All direct materials costs are added at the beginning of the production cycle. Conversion costs are incurred uniformly over the production cycle. Weighted-average costing is used by Coca Cola. WÏP beginning inventory is:
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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