ABC Corporation uses the weighted-average method in its process costing system. The Assembly Department started during the month with 15,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. An additional 130,000 units were transferred in from the preceding department during the month to begin processing in the Assembly Department. During the month 125,000 units were completed in the Assembly Department and transferred to the next processing department. There were 14,000 units in the ending work in process inventory of the Assembly Department that were 40% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?
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.
ABC Corporation uses the weighted-average method in its
What were the equivalent units for conversion costs in the Assembly Department for the month?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
