12) The first production department of Pettis Manufacturing reports the following for April. Units Beginning work in process inventory Units started this period Conversion Costs added this period 300,000 Direct materials 1,610,000 Completed and transferred out Ending work in process inventory 410,000 The first production department reports the following cost information below. Beginning work in process inventory Direct materials Direct Materials Conversion Percent Percent Complete 1,500,000 60% 80% $ 592,360 242,970 $ 4,251,840 Complete 40% 30% $ 835,330 $ 7,498,320 Conversion 3,246, 480 Using the weighted-average method, compute cost per equivalent unit for both direct materials and 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.
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