A company's Grinding department started 1,680 units in production for June. The Grinding department's unit and cost Information for June follows. Grinding Department Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Cost of beginning work in process Direct materials Conversion Costs added this period Direct materials Conversion Cost per Equivalent Unit of Production Units Total costs - Equvalent units of production Cost per equivalent unit of production 376 1,680 1,570 480 $ 662,360 312,970 4,529,418 3,384,128 Percent Complete for Direct Materials 60% Direct Materials 80% Percent Complete for Conversion 40% $975,330 7,913,546 Using the weighted average method, calculate the Grinding department's cost per equivalent unit of production for materials and for conversion for June. 30% 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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