Consider the following data for the assembly division of Company, Inc, The assembly division uses the weighted-average method of process costing Beginning work in process (May 1st) (a) Started in May 2013 Completed during May 2013 Ending work in Process (May 31)(b) Total Costs added during May 2013 Physical Units 100 F 510 Im 450 160 Direct Materials $547,100 $3,85,600 Conversion Costs $141,600 (a) degree of comlpetion : direct materials,80%; conversion costs, 35% (b) degree of completion : direct materials, 80%; conversion costs, 80% 1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule $1,748,460 Using FIFO METHOD of process costing instead of weighted-average method. 2.Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule 3.Use FIFO METHOD to summarize total costs to acocunt for, calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and transferred out) and to units in ending work in process.
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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