1. What is the percentage of completion for (a) transferred‐in costs and direct materials in beginning work‐in‐process inventory, and (b) transferred‐in costs and direct materials in ending work‐in‐process inventory? 2. Calculate total costs assigned to completed and transferred out units to Finished Goods and working process ending units in the testing department, using the current process costing method. (weighted average method) Show each step of the five‐step approach and your calculations clearly. 3. Suppose that Maxion Jantaş uses the FIFO method instead of the weighted‐ average method in all of its departments. Further assume that following changes under the FIFO method are; total transferred‐in costs of beginning work in process on August 1 are $2,881,875 (instead of $2,932,500) and that total transferred‐in costs added during August are $7,735,250 (instead of $7,717,500). Using the FIFO process‐costing method and the given assumptions, repeat part 2
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.
1. What is the percentage of completion for (a) transferred‐in costs and direct
materials in beginning work‐in‐process inventory, and (b) transferred‐in costs
and direct materials in ending work‐in‐process inventory?
2. Calculate total costs assigned to completed and transferred out units to
Finished Goods and working process ending units in the testing department,
using the current
each step of the five‐step approach and your calculations clearly.
3. Suppose that Maxion Jantaş uses the FIFO method instead of the weighted‐
average method in all of its departments. Further assume that following
changes under the FIFO method are; total transferred‐in costs of beginning
work in process on August 1 are $2,881,875 (instead of $2,932,500) and that
total transferred‐in costs added during August are $7,735,250 (instead of
$7,717,500). Using the FIFO process‐costing method and the given
assumptions, repeat part 2
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
