Christie's Co. manufactures cookies. The company has two departments, Mixing and Baking. For the Baking Department, material is added at the beginning of the process. Work happens evenly throughout the process, so Conversion Costs are added evenly to the product. Once mixing is complete, the cookies pieces are immediately transferred to the Baking Department. Once the baking is complete, the final product is transferred to Finished Goods Inventory. Data for the Baking Department is as follows: Units Transfer $ Direct Materials $ % Complete Conv Costs % Complete Opening WIP 550 $3,500 $2,800 100% $2,100 30% New units & Costs 2,000 $12,300 $8,100 $14,000 Ending WIP 680 ??? 65% Calculate the physical and equivalent units for Transferred-In, Direct Materials and Conversion Costs
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.
Christie's Co. manufactures cookies. The company has two departments, Mixing and Baking. For the Baking Department, material is added at the beginning of the process. Work happens evenly throughout the process, so Conversion Costs are added evenly to the product. Once mixing is complete, the cookies pieces are immediately transferred to the Baking Department. Once the baking is complete, the final product is transferred to Finished Goods Inventory. Data for the Baking Department is as follows:
| Units | Transfer $ | Direct Materials $ |
% Complete | Conv Costs | % Complete | |
| Opening WIP | 550 | $3,500 | $2,800 | 100% | $2,100 | 30% |
| New units & Costs | 2,000 | $12,300 | $8,100 | $14,000 | ||
| Ending WIP | 680 | ??? | 65% |
Calculate the physical and equivalent units for Transferred-In, Direct Materials and Conversion Costs
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
