Labor Units Materials Overhead Work in process inventory, beginning Units started in process ....... Units transferred out... Work in process inventory, ending Cost added during the month $4,320 $1,040 $1,790 5,000 45,000 42,000 8,000 ....... $52,800 $21,500 $32,250
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 and Cost per Equivalent Unit—Weighted-Average Method
Pureform, Inc., uses the weighted-average method in its
The beginning work in process inventory was 80% complete with respect to materials and 60% complete with respect to labor and
Required:
1. Compute the first department’s equivalent units of production for materials, labor, and overhead for the month.
2. Determine the first department’s cost per equivalent unit for materials, labor, and overhead for the month.
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