Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process. Work in process, January 1, 10,600 units, 80% completed $112,784* *Direct materials (10,600 × $7.6) $80,560 Conversion (10,600 × 80% × $3.8) 32,224 $112,784 Materials added during January from Weaving Department, 163,200 units $1,264,800 Direct labor for January 265,950 Factory overhead for January 325,051 Goods finished during January (includes goods in process, January 1), 165,200 units — Work in process, January 31, 8,600 units, 35% completed — a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places. PLEASE SEE SCREENSHOT
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.
Cost of Production Report
The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.
| Work in process, January 1, 10,600 units, 80% completed | $112,784* | |
| *Direct materials (10,600 × $7.6) | $80,560 | |
| Conversion (10,600 × 80% × $3.8) | 32,224 | |
| $112,784 | ||
| Materials added during January from Weaving Department, 163,200 units | $1,264,800 | |
| Direct labor for January | 265,950 | |
| Factory |
325,051 | |
| Goods finished during January (includes goods in process, January 1), 165,200 units | — | |
| Work in process, January 31, 8,600 units, 35% completed | — |
a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places.
PLEASE SEE SCREENSHOT
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