Afridi Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 110,000 units in its beginning work in process inventory that were 80% complete with respect to material costs. An additional 395,000 units were transferred in from the preceding department during the month to begin processing in the Assembly Department. There were 100,000 units in the ending work in process inventory of the Assembly Department that were 70% complete with respect to material 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.
Afridi Corporation uses the weighted-average method in its
What were the equivalent units for material costs in the Assembly Department for the month?
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