Carbamate Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing Refining, and Packaging. On january 1, the Refining Department had 2000 gallons of partially processed product in production. During January, 31,000 gallons were transferred in from the Mixing Department, and 32,000 gallons were completed and transferred out. At the end of the month, 1000 gallons of partially processed product remained in the Refining Department. The weighted-average method is used. See additional details below. Refining Department, ending balance at January 31 Percent completed for materials cost: 90% Percent completed for conversion cost: 76% What was the total number of equivalent units of production for conversion costs for the month of January for the Refining Départment? O 32,760 units O 760 units O 32,000 units O 900 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.
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