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. 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.

Number of units transferred to finished goods

Determine the ending balances in the Work in Process Inventory accounts of each department. Finished goods can be defined as all those goods held by the business entity that has passed all the processes of the product and is now ready for sale. All the tools & learning materials you need for study success – in one app.

Calculation of equivalent units using the weighted average method

At the beginning of the month, the roasting department has 2,000 units in inventory, 70% complete as to materials. At the end of the month, the roasting department purchase order number vs purchase order item number had 3,000 units in ending inventory, 80% complete as to materials. Job costing is adhesive costs of each and every job involved in the production processes.

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Braun Company produces its product through a single processing department. Conversion costs are added to the product evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing. The Work in Process Inventory account had a balance of \(21,300 on November 1, which consisted of \)6,800 of direct materials and \(14,500 of conversion costs.

• BOGO Inc. has two sequential processing departments, roasting and mixing.
• Braun Company produces its product through a single processing department.
• The Work in Process Inventory account had a balance of \(21,300 on November 1, which consisted of \)6,800 of direct materials and \(14,500 of conversion costs.
• Conversion costs are added to the product evenly throughout the process.
• April’s beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion.

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. Azule Co. manufactures in two sequential processes, cutting and binding.

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During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April’s beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. During November, the company started 104,500 units and transferred 100,000 units to finished goods. BOGO Inc. has two sequential processing departments, roasting and mixing.