The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs 1. Transferred out 13,300 units. Beginning work in process $0 2. Started 4,900 units that are 60% Materials 62,790 complete as to conversion Labor 26,296 costs and 100% complete as Manufacturing overhead 20,800 to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production enter a number of units enter a number of units Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials $enter a dollar amount rounded to 2 decimal places Conversion costs $enter a dollar amount rounded to 2 decimal places Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) Cost Reconciliation Costs accounted for Transferred out $enter a dollar amount Work in process, July 31 Materials $enter a dollar amount Conversion costs enter a dollar amount enter a total of the two previous amounts Total costs $enter a total amount for this cost reconciliation schedule rounded to 0 decimal places
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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Production
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Costs
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1.
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Transferred out 13,300 units. |
Beginning work in process
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$0 | |||
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2.
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Started 4,900 units that are 60% |
Materials
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62,790 | |||
| complete as to conversion |
Labor
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26,296 | ||||
| costs and 100% complete as |
Manufacturing
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20,800 | ||||
| to materials at July 31. |
Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.
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Materials
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Conversion Costs
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|---|---|---|---|---|
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Total equivalent units of production
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enter a number of units
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enter a number of units
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Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.)
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Materials
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$enter a dollar amount rounded to 2 decimal places
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|---|---|---|
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Conversion costs
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$enter a dollar amount rounded to 2 decimal places
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Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)
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Cost Reconciliation
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Costs accounted for
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Transferred out
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$enter a dollar amount
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Work in process, July 31
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Materials
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$enter a dollar amount
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Conversion costs
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enter a dollar amount | enter a total of the two previous amounts | |
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Total costs
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$enter a total amount for this cost reconciliation schedule rounded to 0 decimal places
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