Aplle Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 900 Materials costs $ 9,600 Conversion costs $ 7,700 Percent complete with respect to materials 60 % Percent complete with respect to conversion 45 % Units started into production during the month 8,100 Units transferred to the next department during the month 6,900 Materials costs added during the month $ 115,800 Conversion costs added during the month $ 120,500 Ending work in process inventory: Units in ending work in process inventory 2,100 Percent complete with respect to materials 75 % Percent complete with respect to conversion 20 % What are the equivalent units for materials for the month in the first processing department?
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.
| Beginning work in process inventory: | |||
| Units in beginning work in process inventory | 900 | ||
| Materials costs | $ | 9,600 | |
| Conversion costs | $ | 7,700 | |
| Percent complete with respect to materials | 60 | % | |
| Percent complete with respect to conversion | 45 | % | |
| Units started into production during the month | 8,100 | ||
| Units transferred to the next department during the month | 6,900 | ||
| Materials costs added during the month | $ | 115,800 | |
| Conversion costs added during the month | $ | 120,500 | |
| Ending work in process inventory: | |||
| Units in ending work in process inventory | 2,100 | ||
| Percent complete with respect to materials | 75 | % | |
| Percent complete with respect to conversion | 20 | % |
What are the equivalent units for materials for the month in the first processing department?
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