Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method o account for units and costs. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June): June 1-balance Materials Direct labour Overhead June 30-balance Work in Process-Mixing Department $ 27,000 Completed and transferred to finished goods 154,205 98,500 116,000 ? ? The June 1 work in process inventory consisted of 4,100 kilograms with $14,700 in materials cost and $12,300 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 36,600 kilograms were started into production. The June 30 work in process nventory consisted of 9,400 kilograms that were 100% complete with respect to materials and 50% complete with respect 9 conversion.
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 total cost to be accounted for?
2. What is the total cost accounted for?
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Clopack Company manufactures one product that goes through one processing department called Mixing. All raw
materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method
to account for units and costs. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming
questions pertain to June):
June 1-balance
Materials
Direct labour
Overhead
June 30-balance
Work in Process-Mixing Department
$ 27,000 Completed and transferred to finished goods
154, 205
98,500
116,000
?
The June 1 work in process inventory consisted of 4,100 kilograms with $14,700 in materials cost and $12,300 in
conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete
with respect to conversion. During June, 36,600 kilograms were started into production. The June 30 work in process
inventory consisted of 9,400 kilograms that were 100% complete with respect to materials and 50% complete with respect
to conversion.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75d8f333-11d1-4432-9a73-7a65f0b6a787%2Fcb834e02-ceef-45e3-9b2a-08bdfeec736f%2Fv251gz98_processed.png&w=3840&q=75)
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