Direction: Attached the computation. 1. Mattheus Company had a beginning Work in Process inventory of 30,000 units on June 1. These units contained Php 120,000 of direct materials and Php 272,000 of conversion cost. The following data relate to activity during June: Production completed (units) Ending work in process, 60% complete (units) Direct Materials used Conversion Cost 70,000 20,000 258,000,00 695,600.00 Mattheus uses a weighted average process costing system. All materials are added at the start of manufacturing process, in contrast, conversion cost is incurred evenly throughout production. • Compute for the total equivalent units for Direct Materials Compute for the total equivalent units for Conversion Cost .
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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