Carlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 11,100 units during November. The following production activity in both units and costs refers to the Assembly department's November activities. Assembly Department Units Beginning work in process inventory 3,000 60% Percent Complete for Direct Materials Percent Complete for Conversion 40% Units started this period 11,100 Units completed and transferred out 10,000 Ending work in process inventory 4,100 90% 40% Cost of beginning work in process Direct materials $ 1,511 Conversion Costs added this month Direct materials Conversion 312 $ 1,823 19,024 22,968 41,992 Calculate the Assembly department's cost per equivalent unit of production for materials and for conversion for November. Use the FIFO method. Direct Materials Conversion Cost per equivalent unit of production-FIFO Numerator: Denominator: Cost per equivalent unit of production / /
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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