1 What was the equivalent units for materials costs 2 What was the equivalent units for conversion cost 3 The cost of a finished unit is 4 The cost of the goods completed is Summer Company makes a single chemical product in 2 departments. The addition of chemicals in the second department increases the weight of the product by 10% because of additional chemicals added when production reaches 50% of completion stage. The following are the information of Dept B for May 2021: Units: In Process Beg 70% done 10,000 30,000 Received from Dept A Completed and Transferred In Process End 60% Costs: In Process, Beg Preceding Dept Cost Materials Conversion 28,000 ??? P20,150 P97.350 P80,850 P81,000
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.
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