The following data are provided to you by the 2nd Department of Smart Company Quantity data: Beginning WIP Received preceding department 30,000 20% complete as to materials and 30% for conversion cost 90,000 Completed and Transferred 100,000 Ending WIP 20,000 40% complete as to materials and 10% for conversion cost Beginning Cost data: Balance TMC Cost this department Raw Materials P6,660.00 P76,500.00 Conversion Cost 5,310.00 23,250.00 Cost preceding department 21,000.00 P32,970.00 45,000.00 P144,750.00 Total Prepare the Cost of Production Report under a. FIFO b. Average Artivate Winrtne
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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