Lakeland Chemical manufactures a product called Zing. Direct materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 70% complete with respect to conversion; the ending work-in-process inventory is 20% complete. The following data pertain to May: Work in process, May 1 Units started during May Units completed and transferred out Work in process, May 31 Costs: Work in process, May 1 Costs incurred during May Totals. Units 17,000 70,000 78,000 9,000 Total $ 51,250 240,630 $291,880 Conversion Direct Materials. Costs $ 20,500 $ 30,750 76,000 164,630 $ 96,500 $ 195,380 Using the weighted-average method of process costing, the total costs remaining in work in process on May 31 are closest to (Do not round intermediate calculations):
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.
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