A process with 1500 units of beginning work in process, completed and transferred out 26200 units during a period. There were 9000 units in the ending work in process that were 50% complete as to conversion costs. Materials are added 90% at the beginning of the process and 10% when the units are 90% complete. How much is equivalent units of production for the period for material costs? 27100 equivalent units. 33400 equivalent units. 35200 equivalent units. 34300 equivalent units
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.
A process with 1500 units of beginning work in process, completed and transferred out 26200 units during a period. There were 9000 units in the ending work in process that were 50% complete as to conversion costs. Materials are added 90% at the beginning of the process and 10% when the units are 90% complete. How much is equivalent units of production for the period for material costs?
Percentage of completion of materials-Units completed and transferred out = 100%
Given, materials are added 90% at the beginning of the process and 10% when the units are 90% complete.
As the ending work in process is completed 50% only, percentage of completion with respect to materials is 90%.
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