Following is information about the assembly department of a company: 1. There were 203,700 units in work in process inventory on August 1. With respect to units transferred in, 100% were complete and costs incurred amounted to $126,500. With respect to conversion, 80% of the units were complete and costs incurred amounted to $56,200. 2. 513,400 units were transferred in from the cutting department during August. 3. 586,100 units were completed during August and transferred to the finished goods inventory. 4. During August, costs incurred were as follows: $511,719 for units transferred in from cutting, $474,741 for direct materials used, and $147,140 for conversion costs. 5. There are 131,000 units in work in process inventory on August 31. With respect to the units transferred in, 100% are complete and 70% are complete with respect to conversion. Prepare a production cost report. (Round unit costs to 7 decimal places, e.g. 0.1287345 and all other answers to 0 decimal places, e.g. 5,275.) Transferred in Direct Materials Conversion costs Totals Units to be accounted for: Work in process inventory, Aug. 1 enter a number of units Units transferred in enter a number of units enter a total number of units Units accounted for: Transferred out enter a number of units enter a number of units enter a number of units Work in process inventory, Aug. 31 enter a number of units enter a number of units enter a number of units enter a total number of units enter a total number of units enter a total number of units Costs in August $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount Equivalent units enter a number of units enter a number of units enter a number of units Unit cost $enter a dollar amount rounded to 7 decimal places $enter a dollar amount rounded to 7 decimal places $enter a dollar amount rounded to 7 decimal places $enter a dollar amount rounded to 7 decimal places Costs to be accounted for: Work in process inventory, Aug. 1 $enter a dollar amount Started into production enter a dollar amount $enter a total amount Costs to be accounted for Completed and transferred out $enter a dollar amount Work in process inventory, Aug. 31 Transferred in $enter a dollar amount Conversion costs enter a dollar amount Total costs accounted for $enter a total amount
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.
Following is information about the assembly department of a company: 1. There were 203,700 units in work in process inventory on August 1. With respect to units transferred in, 100% were complete and costs incurred amounted to $126,500. With respect to conversion, 80% of the units were complete and costs incurred amounted to $56,200. 2. 513,400 units were transferred in from the cutting department during August. 3. 586,100 units were completed during August and transferred to the finished goods inventory. 4. During August, costs incurred were as follows: $511,719 for units transferred in from cutting, $474,741 for direct materials used, and $147,140 for conversion costs. 5. There are 131,000 units in work in process inventory on August 31. With respect to the units transferred in, 100% are complete and 70% are complete with respect to conversion. Prepare a production cost report. (Round unit costs to 7 decimal places, e.g. 0.1287345 and all other answers to 0 decimal places, e.g. 5,275.) Transferred in Direct Materials Conversion costs Totals Units to be accounted for: Work in process inventory, Aug. 1 enter a number of units Units transferred in enter a number of units enter a total number of units Units accounted for: Transferred out enter a number of units enter a number of units enter a number of units Work in process inventory, Aug. 31 enter a number of units enter a number of units enter a number of units enter a total number of units enter a total number of units enter a total number of units Costs in August $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount Equivalent units enter a number of units enter a number of units enter a number of units Unit cost $enter a dollar amount rounded to 7 decimal places $enter a dollar amount rounded to 7 decimal places $enter a dollar amount rounded to 7 decimal places $enter a dollar amount rounded to 7 decimal places Costs to be accounted for: Work in process inventory, Aug. 1 $enter a dollar amount Started into production enter a dollar amount $enter a total amount Costs to be accounted for Completed and transferred out $enter a dollar amount Work in process inventory, Aug. 31 Transferred in $enter a dollar amount Conversion costs enter a dollar amount Total costs accounted for $enter a total amount
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