Jai Hind Company manufactures a product that passes in four departments in a continuous process. Department C had no beginning work in process and transferred in 36,000 units from Department B, each with equivalent unit cost of ₱6.25. In Department C, unit costs for materials, labor and applied overhead are ₱4.00, ₱3.00 and ₱3.875, respectively. Direct materials in Department C are added at the beginning of the process. Department C had 9,600 units in the ending work in process which are 65% completed as to conversion costs. If 1,240 units were lost in Department C at Jai Hind's inspection point where conversion costs were 45% complete, what was the total costs of lost units?
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.
Jai Hind Company manufactures a product that passes in four departments in a continuous process. Department C had no beginning work in process and transferred in 36,000 units from Department B, each with equivalent unit cost of ₱6.25. In Department C, unit costs for materials, labor and applied
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