(Algo) Equivalent Units; Weighted-Average and FIFO Equivalent Unit Cost [LO 6-2, 6-3, 6-4, 6-5] Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for June Work-in-process inventory, June 1: 20,000 units Direct materials: 100% complete $ 40,000 Conversion: 40% complete 16,000 Balance in work-in-process, June 1 $ 56,000 Units started during June 48,000 Units completed and transferred out 48,000 Work-in-process inventory, June 30 20,000 Direct materials: 100% complete Conversion: 80% complete Costs incurred during June Direct materials $ 129,600 Conversion costs Direct labor 129,600 Applied overhead 168,000 Total conversion costs $ 297,600 Required: 1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)
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.
(Algo) Equivalent Units; Weighted-Average and FIFO Equivalent Unit Cost [LO 6-2, 6-3, 6-4, 6-5] Pablo Company calculates the cost for an equivalent unit of production using
Data for June Work-in-process inventory, June 1: 20,000 units Direct materials: 100% complete $ 40,000 Conversion: 40% complete 16,000 Balance in work-in-process, June 1 $ 56,000 Units started during June 48,000 Units completed and transferred out 48,000 Work-in-process inventory, June 30 20,000 Direct materials: 100% complete Conversion: 80% complete Costs incurred during June Direct materials $ 129,600 Conversion costs Direct labor 129,600 Applied
Required:
1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)
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