Carlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 10,700 units during November. The following production activity in both units and costs refers to the Assembly department's November activities. Assembly Department Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Cost of beginning work in process Direct materials Conversion Costs added this month Direct materials Conversion Cost per Equivalent Unit of Production Costs of beginning work in process Costs added this period Total costs -Equivalent units of production Cost per equivalent unit of production Units $ 3,000 10,700 10,000 3,700 Direct Materials $ $ $ 977 779 Percent Complete for Percent Direct Materials 70% 12,353 21,441 Calculate the Assembly department's cost per equivalent unit of production for materials and for conversion for November. Use the weighted average method. 977 $ 12,353 13,330 $ 13,330 1.00 90% Conversion Complete for Conversion 30% $ 1,756 33,794 779 21,441 22,220 30%
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.
F2.
Subject :- Accounting
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