Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,300 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities. Assembly Department Units Percent of Direct Materials Percent of Conversion Beginning work in process 3,200 75 % 25 % Units transferred out 10,200 100 % 100 % Ending work in process 5,300 90 % 40 % Beginning work in process inventory—Assembly dept $ 1,767 (consists of $1,143 for direct materials and $624 for conversion) Costs added during the month: Direct materials $ 13,827 Conversion $ 17,856
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.
Can you show me the steps on how to calculate the assembly department’s cost per equivalent unit of production for materials and for conversion for November. Use the weighted-average method?
Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,300 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities.
| Assembly Department | Units | Percent of Direct Materials |
Percent of Conversion |
||||||
| Beginning work in process | 3,200 | 75 | % | 25 | % | ||||
| Units transferred out | 10,200 | 100 | % | 100 | % | ||||
| Ending work in process | 5,300 | 90 | % | 40 | % | ||||
| Beginning work in process inventory—Assembly dept |
$ | 1,767 (consists of $1,143 for direct materials and $624 for conversion) |
|
| Costs added during the month: | |||
| Direct materials | $ | 13,827 | |
| Conversion | $ | 17,856 | |
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