At the start of production, McKenzie Company adds all the raw materials that will be needed for production. The following production information is available for June: Beginning Work in Process Inventory (35% complete as to conversion) 10,000 units Started this period 120,000 units Ending Work in Process Inventory (60% complete as to conversion) 8,000 units Beginning Work in Process Inventory Costs: Material $32,000 Conversion 74,000 Current Period Costs: Material $ 298,243 Conversion 89,979 For this problem assume the cost per equivalent units for direct materials is $2.54 and the cost per equivalent units for conversion is $1.29. What is the cost of units completed using the weighted average? Group of answer choices $509,600 $343,980 $366,275 $467,260
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.
McKenzie Company
At the start of production, McKenzie Company adds all the raw materials that will be needed for production. The following production information is available for June:
| Beginning Work in Process Inventory | |||
| (35% complete as to conversion) |
10,000
|
units | |
| Started this period |
120,000
|
units | |
| Ending Work in Process Inventory | |||
| (60% complete as to conversion) |
8,000
|
units | |
| Beginning Work in |
|||
| Material |
$32,000
|
||
| Conversion |
74,000
|
||
| Current Period Costs: | |||
| Material |
$ 298,243
|
||
| Conversion |
89,979
|
||
For this problem assume the cost per equivalent units for direct materials is $2.54 and the cost per equivalent units for conversion is $1.29. What is the cost of units completed using the weighted average?
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