Angel Burgers Company has the following information for July: Units started 100,000 units Beginning work in process (35% complete) 20,000 units Normal spoilage (discrete) 3,500 units Abnormal spoilage 5,000 units Ending work in process (70% complete) 14,500 units Transferred out 97,000 units Beginning work in process costs: Material P 15,000 Conversion 10,000 All materials are added at the beginning of the production. Company inspects at 75% completion 1. What is the equivalent units of production for conversion costs, assuming FIFO? 2. Assuming that the inspection is at 60% completion of conversion, what is the equivalent units of production for conversion costs using average method
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.
Angel Burgers Company has the following information for July:
Units started 100,000 units
Beginning work in process (35% complete) 20,000 units
Normal spoilage (discrete) 3,500 units
Abnormal spoilage 5,000 units
Ending work in process (70% complete) 14,500 units
Transferred out 97,000 units
Beginning work in
Material P 15,000
Conversion 10,000
All materials are added at the beginning of the production. Company inspects at 75% completion
1. What is the equivalent units of production for conversion costs, assuming FIFO?
2. Assuming that the inspection is at 60% completion of conversion, what is the equivalent units of production for conversion costs using average method?
Answer this please. Thank you!
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