Breckenridge Corporation manufactures a part in a single production process in Department B. The company reports the following information about conversion costs for June: Units 60,000 320,000 270,000 Conversion Costs $ 137,600 944,675 WIP at June 1 (70% complete) Units started and costs incurred during June Units completed and transferred to finished goods during June Work-in-process ending inventory was 50 percent complete with respect to conversion costs. Breckenridge uses FIFO for product costing. Required: a-1. Compute the equivalent units for conversion costs. a-2. Compute the cost per equivalent unit for conversion costs. a-3. What was the conversion cost of work-in-process inventory in Department B on June 30? b. What were the conversion costs per equivalent unit produced last period and this period, respectively?
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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