Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating department: Units Direct materials Percent Complete Conversion Percent Complete Beginning work in process inventory 91,000 80% 25% Units started and completed 261,000 Units completed and transferred out 352,000 Ending work in process inventory 35,500 40% 15% Production cost information for the Fabricating department follows. Beginning work in process Direct materials $ 48,200 Conversion 90,700 $ 138,900 Costs added this period Direct materials $ 768,760 Conversion 930,300 $ 1,699,060 Calculate the equivalent units of production for conversion.
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.
Richards Corporation uses the FIFO method of
| Units | Direct materials Percent Complete | Conversion Percent Complete | |
|---|---|---|---|
| Beginning work in process inventory | 91,000 | 80% | 25% |
| Units started and completed | 261,000 | ||
| Units completed and transferred out | 352,000 | ||
| Ending work in process inventory | 35,500 | 40% | 15% |
Production cost information for the Fabricating department follows.
| Beginning work in process | ||
|---|---|---|
| Direct materials | $ 48,200 | |
| Conversion | 90,700 | $ 138,900 |
| Costs added this period | ||
| Direct materials | $ 768,760 | |
| Conversion | 930,300 | $ 1,699,060 |
Calculate the equivalent units of production for conversion.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
