Given the following information, determine the equivalent units of ending work in process for materials and conversion under the weighted-average method: beginning inventory of 2,500 units is 100% complete with regard to materials and 60% complete with regard to conversion 18,000 units were started during the period 17,500 units were completed and transferred ending inventory is 100% complete with materials and 65% complete with conversion Complete the table below: Equivalent units data Units Materials Conversion costs Beginning inventory Started in production Units to account for Transferred out Ending inventory Units accounted for
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.
Given the following information, determine the equivalent units of ending work in process for materials and conversion under the weighted-average method:
- beginning inventory of 2,500 units is 100% complete with regard to materials and 60% complete with regard to conversion
- 18,000 units were started during the period
- 17,500 units were completed and transferred
- ending inventory is 100% complete with materials and 65% complete with conversion
Complete the table below:
Equivalent units data
| Units | Materials | Conversion costs | |
|---|---|---|---|
| Beginning inventory | |||
| Started in production | |||
| Units to account for | |||
| Transferred out | |||
| Ending inventory | |||
| Units accounted for |
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