Russell Company uses a job-order costing system and began the month of March with three jobs in process. The cost of beginning work in process plus the costs added during March are given below: beginning work in process COSTS ADDED DURING MARCH: direct material cost direct labor cost beginning work in process ....... COSTS ADDED DURING MARCH: direct material cost direct labor cost. beginning work in process COSTS ADDED DURING MARCH: direct material cost direct labor cost Job #24 $16,000 $34,000 $22,000 Job #63 $ 9,000 $28,000 $15,000 Job # 88 $22,000 $37,000 $49,000 Russell Company applies overhead to jobs at a rate of 120% of direct materials cost. During March, Job #24 and Job #88 were completed. Job # 63 was not completed by the end of March. Additionally, by the end of March, all of Job #24 was sold and one-third of Job #88 was sold. Calculate the amount of work in process inventory shown in Russell Company's March 31 balance sheet.
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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