Cool Drinks Inc. (CDI) manufactures beverages in a highly automated process. Its costing system uses two cost categories: direct materials and conversion costs. Each batch of product must pass through the Mixing Department and the Testing Department. Direct materials are all added at the beginning of the production process, and conversion costs are incurred evenly throughout production. CDI uses the weighted average cost method for costing. Data for the Mixing Department for April Work in process, beginning inventory: 500 units Conversion costs: 40% complete Units started during April: 1,700 units Work in process, ending inventory: 300 units Conversion costs: 80% complete Costs for April Cost of work in process, beginning, direct materials: $281,000 Conversion costs: $752,000 Costs added in April Direct materials: $3,030,000 Conversion costs: $4,320,000 Required: What is the direct materials cost per equivalent unit for April? (Round your answer to 3 decimal places.) Equivalent unit for direct materials 2. What are the equivalent units of production for conversion during April? Equivalent units for conversion units

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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.