Required: Using the weighted-average method of process costing, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit. 4. Reconcile the total cost of work in process.
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.
![Legacy Company manufactures umbrellas and has the following information available for the month of May.
Work in process, May 1 (100% complete for materials,
90% for conversion)
Direct materials
Conversion cost
Number of units started
May costs
Direct materials
Conversion cost
Work in process, May 31 (100% complete for materials,
20% for conversion)
35,500
units
$ 64,000
$ 87,000
90,000 units
$ 102,500
$ 189,000
33,000 units
E3-11 (Algo) Weighted-Average Method [LO 3-2]
Required:
Using the weighted-average method of process costing, complete each of the following steps:
1. Reconcile the number of physical units worked on during the period.
2. Calculate the number of equivalent units.
3. Calculate the cost per equivalent unit.
4. Reconcile the total cost of work in process.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
Using the weighted-average method of process costing, reconcile the number of physical units worked on during the period.
Physical
Units
Physical
Units
Beginning Units
Units Started
Total Units
35,500 Units Completed
90,000 Ending Units
125,500 Total Units
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