Albuny Compuny accumulates costs for its product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the proce ss. Partial Production Report; Journal Entries; Weighted- Average Method (LO 4-2, 4-3, 4-4, 4-5) Production Report For August 20x1 2. Cost per equivalent unit, total: $1.43 5. Work-in-Process Inventory (credi): $1,143,000 Equivalent Units Percentage of Completion with Respect to Converslon Physkal Units Direct Materlal Conversion Work in process, August 1 Units started duning August 40,000 80,000 80% Total units to account for 120,000 Units completed and transferred out during August Work in process, August 31 100,000 100,000 100,000 20,000 120,000 30% 20,000 6,000 Total units accounted for. kontrund) 162 Chapter 4 Process Costing and Hybrid Product-Costing Systems Direct Matertal $ 42,000 Conversion $ 305,280 784,400 $1,089,680 $1.227,680 Total $ 347,280 Work in process, August 1. Casts Incurred during August. Total costs to account for. 96,000 880,400 $138,000 Required: Use weighted-uverage process costing in completing the following requirements. 1. Prepare a schedule of equivalent units. 2. Compute the costs per equivalent unit. 3. Compute the cost of goods completed and trunserred out during August. 4. Compute the cost remaining in the work-in-process inventory on August 31. 5. Prepare a journal entry to record the transer of the cost of goods completed and transfered out during August.
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.
Problem 4-30
Albany Company accumulates costs for its product using
Production Report on image below
Required: Use weighted-average process costing in completing the following requirements.
1. Prepare a schedule of equivalent units.
2. Compute the costs per equivalent unit.
3. Compute the cost of goods completed and transferred out during August.
4. Compute the cost remaining in the work-in-process inventory on August 31.
5. Prepare a
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