art B of question, Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit $ Change in conversion cost per equivalent unit
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.
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Part A of question, see images.
Part B of question,
Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to two decimal places.
| Increase or Decrease | Amount | |
| Change in direct materials cost per equivalent unit | $ | |
| Change in conversion cost per equivalent unit | $ |
![The document displays a production cost report with a focus on inventory and cost allocations for a Roasting Department for the month of August. Below is the transcription of the text and an explanation of the table:
### Production Cost Report
#### Inventory Information:
- **Inventory in process, August 1**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Started and completed in August**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Transferred to finished goods in August**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Inventory in process, August 31**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
- **Total units to be assigned costs**
- Whole Units: [Blank]
- Materials: [Blank]
- Conversion: [Blank]
#### Cost Information:
- **Costs per equivalent unit:**
| | Direct Materials | Conversion |
|------------------|------------------|------------|
| **Total costs for August in Roasting Department** | $[Blank] | $[Blank] |
| **Total equivalent units** | [Blank] | [Blank] |
| **Cost per equivalent unit (2)** | $[Blank] | $[Blank] |
- **Costs assigned to production:**
| | Direct Materials | Conversion | Total |
|------------------|------------------|------------|-------|
| **Inventory in process, August 1** | $[Blank] | $[Blank] | [Blank] |
| **Costs incurred in August** | $[Blank] | $[Blank] | [Blank] |
| **Total costs accounted for by the Roasting Department** | | | [Blank] |
Costs allocated to completed and partially completed units:
- **Inventory in process, August 1 balance**
- Direct Materials: [Blank]
- Conversion: [Blank]
- **To complete inventory in process, August 1**
- Direct Materials: $[Blank]
- Conversion: $[Blank]
- **Cost of completed August 1 work in process**
- Direct Materials: [Blank]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d90078a-cea4-4702-98e6-44e4a5603075%2Fadb2878a-e3e0-4468-bf83-543263706b33%2Fxhra45g_processed.jpeg&w=3840&q=75)
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