Cha Cha Rap makes ready-to-drink milk tea. Its process consists of preparing the tea in the Brewing Department and then transferring it to Packaging Department for finishing. A quantity schedule for February 2019 is shown below: Brewing Department Packaging Department Units started in process 44,000 Units received from last department 32,000 Units transferred to next department 32,000 Units transferred to finished stock 24,560 Units in process, end 12,000 Units in process, end 7,440 Units in process at the end in both departments are 72% completed. In Packaging Department, what is the equivalent production for conversion costs? Group of answer choices 29,916.80 32,000.00 27,571.60 24,560.00
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.
Cha Cha Rap makes ready-to-drink milk tea. Its process consists of preparing the tea in the Brewing Department and then transferring it to Packaging Department for finishing. A quantity schedule for February 2019 is shown below:
|
Brewing Department |
|
Packaging Department |
|
|
Units started in process |
44,000 |
Units received from last department |
32,000 |
|
Units transferred to next department |
32,000 |
Units transferred to finished stock |
24,560 |
|
Units in process, end |
12,000 |
Units in process, end |
7,440 |
Units in process at the end in both departments are 72% completed. In Packaging Department, what is the equivalent production for conversion costs?
Step by step
Solved in 2 steps
