Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Production cost information for the Painting department follows. Beginning work in procesa Direct materials Conversion Costs added this period Direct materials Conversion $29,400 Unite 23,500 122,000 127,000 18,500 6,950 $36,350 $ 235,700 590,015 825,715 Direct materials Conversion Percent Percent Complete BOL 30% Complete 20% 15% Skye Manufacturing uses the weighted-average method of process costing, compute the cost per equivalent unit for direct materials and conversion spectively for the Painting 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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
