Bioman Corporation produces chemical products. The following data are from the company's Mixing department: Work in Process, beg. Stage of completion Units Started in Process Work in Process, end. Stage of compietion 800,000 30% 700,000 200,000 75% Required: Compute the EUP of materials and conversion costs. A. Using the FIFO method B. Using the Weighted Average method 1. Assuming all materials are added at the start of the process and the conversion cost is applied evenly to the process. 2. Assuming all materials are added at the end of the process and the conversion cost is applied evenly to the process. 3. Assuming materials are added 20% at the start of the process, additional 30% when the process is 60% completed, additional 20% when the process is 80% completed and an additional 30% at the end of the process. Conversion cost is applied evenly to the process 4. Assuming materials are added 30% at the start of the process, additional 40% when the process is 50% completed, and an additional 30% at the end of the process. Conversion cost is applied evenly to the process 5. Assuming materials are added 50% at the start of the process, and the balance is added when the process is 80% completed. Conversion cost is applied evenly to the process
Bioman Corporation produces chemical products. The following data are from the company's Mixing department: Work in Process, beg. Stage of completion Units Started in Process Work in Process, end. Stage of compietion 800,000 30% 700,000 200,000 75% Required: Compute the EUP of materials and conversion costs. A. Using the FIFO method B. Using the Weighted Average method 1. Assuming all materials are added at the start of the process and the conversion cost is applied evenly to the process. 2. Assuming all materials are added at the end of the process and the conversion cost is applied evenly to the process. 3. Assuming materials are added 20% at the start of the process, additional 30% when the process is 60% completed, additional 20% when the process is 80% completed and an additional 30% at the end of the process. Conversion cost is applied evenly to the process 4. Assuming materials are added 30% at the start of the process, additional 40% when the process is 50% completed, and an additional 30% at the end of the process. Conversion cost is applied evenly to the process 5. Assuming materials are added 50% at the start of the process, and the balance is added when the process is 80% completed. Conversion cost is applied evenly to the process
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Bioman Corporation produces chemical products. The following data are from
the company's Mixing depariment:
Work in Process, beg.
Stage of completion
Units Started in Process
800,000
30%
700,000
200,000
Work in Process, end.
75%
Stage of compiction
Required: Compute the EUP of materials and conversion costs.
A. Using the FIFO method
B. Using the Weighted Average method
1. Assuming all materials are added at the start of the process and the
conversion cost is applied evenly to the process.
2. Assuming all materials are added at the end of the process and the
conversion cost is applied evenly to the process.
3. Assuming materials are added 20% at the start of the process, additional
30% when the process is 60% completed , additional 20% when the process
is 80% completed and an additional 30% at the end of the process.
Conversion cost is applied evenly to the process
4. Assuming materials are added 30% at the start of the process, additional
40% when the process is 50% completed, and an additional 30% at the end
of the process. Conversion cost is applied evenly to the process
5. Assuming materials are added 50% at the start of the process, and the
balance is added when the process is 80% completed. Conversion cost is
applied evenly to the process
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