Blossom Manufacturing Ltd. has the following cost and production data for the month of November. Conversion costs are incurred uniformly throughout the process. Units in beginning work in process Units started into production Units completed and transferred Units in ending work in process Beginning inventory costs are: Direct materials Direct labour 16,000 100,000 The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of the process. Costs pertaining to the month of November are as follows: 90,000 26,000 Direct materials Direct labour Manufacturing overhead Manufacturing overhead Costs incurred during November include: $63,000 18,000 13,000 $517,000 195,000 326,200
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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