Bettie Corporation uses a weighted-average process costing system to collect costs related to production. The following selected information relates to production for October: Materials Conversion Units transferred to the next department 50,000 50,000 Equivalent units: work in process, October 31 10,000 4,000 Total equivalent units 60,000 54,000 Materials Conversion Costs in work in process on October 1 $ 9,000 $ 5,400 Costs added to production during October 243,000 513,000 Total cost $ 252,000 $ 518,400 All materials at Bettie are added at the beginning of the production process. What total amount of cost should be assigned to the units in work in process on October 31?
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.
| Materials | Conversion | ||||||
| Units transferred to the next department | 50,000 | 50,000 | |||||
| Equivalent units: work in process, October 31 | 10,000 | 4,000 | |||||
| Total equivalent units | 60,000 | 54,000 |
| Materials | Conversion | ||||||
| Costs in work in process on October 1 | $ | 9,000 | $ | 5,400 | |||
| Costs added to production during October | 243,000 | 513,000 | |||||
| Total cost | $ | 252,000 | $ | 518,400 |
All materials at Bettie are added at the beginning of the production process.
What total amount of cost should be assigned to the units in work in process on October 31?
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