The charges to Work in Process—Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the average cost method, and all direct materials are placed in process during production. Work in Process—Baking Department Bal., 2,600 units, 70% completed 6,292 To Finished Goods, 18,700 units ? Direct materials, 19,000 units 67,070 Direct labor 31,662 Factory overhead 16,310 Bal., 2,900 units, 30% completed ? If required, round cost per equivalent unit answer to two decimal places. 1.Determine the cost of the units transferred to Finished Goods. 2. Determine the cost of units in ending Work in Process.
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.
The charges to Work in Process—Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the average cost method, and all direct materials are placed in process during production.
| Work in Process—Baking Department | |||
|---|---|---|---|
| Bal., 2,600 units, 70% completed | 6,292 | To Finished Goods, 18,700 units | ? |
| Direct materials, 19,000 units | 67,070 | ||
| Direct labor | 31,662 | ||
| Factory overhead | 16,310 | ||
| Bal., 2,900 units, 30% completed | ? |
If required, round cost per equivalent unit answer to two decimal places.
1.Determine the cost of the units transferred to Finished Goods.
2. Determine the cost of units in ending Work in Process.
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