The Mixing Department of It Was Fresh Bakery had 50,500 units to account for in October. Of the 50,500 units, 40,400 units were completed and and transferred to the next department, and 10,100 units were 35% complete. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the mixing process. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the total equivalent units of production for direct materials and conversion costs for October. The Mixing Department for It Was Fresh Bakery has direct materials costs totaling $49,100 and conversions cost of $29,300 for October. 2. Compute the cost per equivalent unit of production for direct materials and for conversion costs.
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.
The Mixing Department of It Was Fresh Bakery had 50,500 units to account for in October. Of the 50,500 units, 40,400 units were completed and and transferred to the next department, and 10,100 units were 35% complete. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the mixing process.
(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
1. Compute the total equivalent units of production for direct materials and conversion costs for October.
The Mixing Department for It Was Fresh Bakery has direct materials costs totaling $49,100 and conversions cost of $29,300 for October.
2. Compute the cost per equivalent unit of production for direct materials and for conversion costs.
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