Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process The blending department had the following data for the month of March: Units in BWIP — Units completed 21,600 Units in EWIP (60% complete) 2,250 Total manufacturing costs $82,620 Required: 1. What is the output in equivalent units for March? equivalent units 2. What is the unit manufacturing cost for March? Round your answer to the nearest cent. $per unit 3. Compute the cost of goods transferred out for March. $ 4. Calculate the value of March's EWIP.
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.
Equivalent Units, Unit Cost, Valuation of Goods Transferred Out and Ending Work in Process
The blending department had the following data for the month of March:
| Units in BWIP | — |
| Units completed | 21,600 |
| Units in EWIP (60% complete) | 2,250 |
| Total |
$82,620 |
Required:
1. What is the output in equivalent units for March?
equivalent units
2. What is the unit manufacturing cost for March? Round your answer to the nearest cent.
$per unit
3. Compute the cost of goods transferred out for March.
$
4. Calculate the value of March's EWIP.
$
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