The ledger of Blossom Company has the following work in process inventory account. Work in Process—Painting 5/1 Balance 3,690 5/31 Completed and transferred out ? 5/31 Direct materials 5,260 5/31 Direct labor 2,582 5/31 Manufacturing overhead 1,280 5/31 Balance ? Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started into production, and 1,400 units completed and transferred out. The beginning work in process had materials cost of $2,140 and conversion costs of $1,550. The units in ending inventory were 40% complete as to conversion costs. Materials are entered at the beginning of the painting process, and conversion costs are incurred uniformly throughout the process. How many units are in process at May 31? Work in process, May 31 enter the number of units in process at May 31 units What is the unit materials cost for May? (Round unit cost to 2 decimal places, e.g. 2.25.) The unit materials cost for May $enter the unit materials cost for May in dollars rounded to 2 decimal places What is the unit conversion cost for May? (Round unit cost to 2 decimal places, e.g. 2.25.) The unit conversion cost for May $enter the unit conversion cost for May in dollars rounded to 2 decimal places What is the total cost of units completed and transferred out in May?
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.
The ledger of Blossom Company has the following work in process inventory account.
|
Work in Process—Painting
|
|||||
|---|---|---|---|---|---|
| 5/1 | Balance | 3,690 | 5/31 | Completed and transferred out | ? |
| 5/31 | Direct materials | 5,260 | |||
| 5/31 | Direct labor | 2,582 | |||
| 5/31 | Manufacturing |
1,280 | |||
| 5/31 | Balance | ? |
Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started into production, and 1,400 units completed and transferred out. The beginning work in process had materials cost of $2,140 and conversion costs of $1,550. The units in ending inventory were 40% complete as to conversion costs. Materials are entered at the beginning of the painting process, and conversion costs are incurred uniformly throughout the process.
How many units are in process at May 31?
| Work in process, May 31 |
enter the number of units in process at May 31
|
units |
What is the unit materials cost for May? (Round unit cost to 2 decimal places, e.g. 2.25.)
| The unit materials cost for May |
$enter the unit materials cost for May in dollars rounded to 2 decimal places
|
What is the unit conversion cost for May? (Round unit cost to 2 decimal places, e.g. 2.25.)
| The unit conversion cost for May |
$enter the unit conversion cost for May in dollars rounded to 2 decimal places
|
What is the total cost of units completed and transferred out in May?
| The total cost of units transferred out in May |
$enter the total cost of units completed and transferred out in May in dollars
|
What is the cost of the May 31 work in process inventory?
| Work in process |
$enter the cost of the May 31 work in process inventory in dollars
|
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