The following information was taken from the books of Hunaiza Manufacturing Company for the month of January 2021 Cost of Units in process at beginning: January 1, 2021 Rs. 60,000 Cost of Raw Material used 177,600 Direct Labour cost incurred 115,200 Factory Overhead Cost incurred 86,400 The data extracted from the production report relating to above process are as follows: Units in process at beginning of January (40% complete as to material and 60% complete as to conversion cost) 10,000 units Units placed in production during January 26,000 units Units in process at end of January 31 (60% complete as to material and 80% as to conversion cost) 6,000 units. The Cost of Work in process at end. While reconciliation Total of either Debit or Credit Work in Process Account
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 following information was taken from the books of Hunaiza Manufacturing Company for the month of January 2021
Cost of Units in process at beginning: January 1, 2021 Rs. 60,000
Cost of Raw Material used 177,600
Direct Labour cost incurred 115,200
The data extracted from the production report relating to above process are as follows:
Units in process at beginning of January
(40% complete as to material and 60% complete as to conversion cost) 10,000 units
Units placed in production during January 26,000 units
Units in process at end of January 31
(60% complete as to material and 80% as to conversion cost) 6,000 units.
- The Cost of Work in process at end.
- While reconciliation Total of either Debit or Credit Work in Process Account
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