Pierce Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September. Work-in-process inventory, September 1 38,000 units Conversion — 60% completed Work-in-process inventory, September 30 24,000 units Conversion — 40% completed Units started into production 86,000 units Units completed and transferred out ? units Costs: Work-in-process inventory, September 1 Material R $122,300 Material S 143,780 Conversion 194,550 Costs added during September: Material R 409,660 Material S 246,820 Conversion 526,618 Material R is added at the beginning of work in the Mixing Department. Material S is also added in the Mixing Department, but not until units of product are thirty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process. Required: (4) Calculate the unit costs using the weighted-average method. (5) Calculate the cost of units completed and transferred out using the weighted-average method. (6) Calculate the cost of ending work in process using the weighted-average method.
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.
Pierce Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.
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|
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Work-in-process inventory, September 1 |
38,000 |
units |
|
Conversion — 60% completed |
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|
Work-in-process inventory, September 30 |
24,000 |
units |
|
Conversion — 40% completed |
|
|
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Units started into production |
86,000 |
units |
|
Units completed and transferred out |
? |
units |
|
Costs: |
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Work-in-process inventory, September 1 |
|
|
|
Material R |
$122,300 |
|
|
Material S |
143,780 |
|
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Conversion |
194,550 |
|
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Costs added during September: |
|
|
|
Material R |
409,660 |
|
|
Material S |
246,820 |
|
|
Conversion |
526,618 |
|
Material R is added at the beginning of work in the Mixing Department. Material S is also added in the Mixing Department, but not until units of product are thirty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process.
Required:
(4) Calculate the unit costs using the weighted-average method.
(5) Calculate the cost of units completed and transferred out using the weighted-average method.
(6) Calculate the cost of ending work in process using the weighted-average method.
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