Brandybuck Furniture utilizes process costing for all their pieces of furniture as they are homogenous and mass-produced. All pieces pass through two processes: carpentry and assembly. They had the following physical units from their carpentry process: Unfinished units, 35% complete 4,000 physical units Units completed and transferred to assembly 6,200 physical 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.
Brandybuck Furniture utilizes
| Unfinished units, 35% complete | 4,000 physical units |
| Units completed and transferred to assembly | 6,200 physical units |
The first process step, carpentry, had 10,200 total physical units. Of that amount, 4,000 remained in process with carpentry at the end of the period. They were 35% complete. The remaining units were finished in carpentry and transferred to the next process step, assembly. What were the total equivalent units for the carpentry process?
4000
3570
14200
1400
10200
7600
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