(a) Calculate the equivalent units of production for materials and conversion costs for the month of April using the first-in, first-out (FIFO) method. Total equivalent units eTextbook and Media Direct Materials 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.
![Crane Manufacturing Inc. has the following cost and production data for the month of April.
Units in beginning work in process
Units started into production
Units completed and transferred
Units in ending work in process
Beginning inventory costs are:
Direct materials
Direct labour
Manufacturing overhead
Costs incurred during April include:
Direct materials
Direct labour
(a)
The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for
conversion costs. Materials are added at the beginning of the process.
Costs pertaining to the month of April are as follows:
Manufacturing overhead
16,000
Total equivalent units
102,000
eTextbook and Media
93,500
24,500
$64,200
19,400
16,400
Calculate the equivalent units of production for materials and conversion costs for the month of April using the
first-in, first-out (FIFO) method.
$561,000
197,900
373,670
Direct Materials
Conversion costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe78de650-7df4-43c9-ac37-36f21892f827%2F74d96f16-d842-4562-9eb9-84b0543c3a3b%2Fsenhzia_processed.jpeg&w=3840&q=75)
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