Manufacturing data for January and February in the Mixing Department of Klinger Kleaning Products follow: All materials are added at the start of the process. Labor and factory overhead are added evenly throughout the process. No units were in process at the beginning of January. Goods finished in Mixing are transferred to Blending for further processing. REQUIRED: From an analysis of this information, prepare a cost of production summary for each month, using the weighted average cost method. (Round unit costs to three decimal places.) Make the journal entries for each month to record the cost of materials, labor, and factory overhead used in production and the transfer of finished units from Mixing to Blending. (Hint: See Chapter 5 to review.)
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.
-
Manufacturing data for January and February in the Mixing Department of Klinger Kleaning Products follow:
-
All materials are added at the start of the process. Labor and factory
overhead are added evenly throughout the process. No units were in process at the beginning of January. Goods finished in Mixing are transferred to Blending for further processing.REQUIRED:
-
From an analysis of this information, prepare a cost of production summary for each month, using the weighted average cost method. (Round unit costs to three decimal places.)
-
Make the
journal entries for each month to record the cost of materials, labor, and factory overhead used in production and the transfer of finished units from Mixing to Blending. (Hint: See Chapter 5 to review.)
-
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
