Babette Manufacturing produces plastic toys and uses process costing There are three processing departments-Assembling, Finishing, and Packaging On anuary 1, the Finishing Department had 2,000 units of partially processed product in production. During January, 32,000 units were transferred in from the Assembling Department and 32,000 units were completed and transferred out. At the end of the month, 2,000 units of partially processed products remained in he Finishing Department. The weighted average method is used. See additional details below Finishing Department, ending balance at January 31 Percent completed for materials cost 94% Percent completed for conversion cost 76% What was the number of equivalent units for the month of January, with respect to direct materials, for the Finishing Department? OA. 33,880 units OB. 34,000 units OC. 32,000 units OD. 1,880 units
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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