Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process—Assembly Department Bal., 6,000 units, 45% completed 16,290 To Finished Goods, 138,000 units ? Direct materials, 141,000 units @ $1.5 211,500 Direct labor 292,800 Factory overhead 113,925 Bal., ? units, 55% completed ? Cost per equivalent units of $1.50 for Direct Materials and $2.90 for Conversion Costs. a. Based on the above data, determine the different costs listed below. If required, round your interim calculations to two decimal places. 1. Cost of beginning work in process inventory completed this period $ 2. Cost of units transferred to finished goods during the period $ 3. Cost of ending work in process inventory $ 4. Cost per unit of the completed beginning work in process inventory (Rounded to the nearest cent.)
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.
Cost of Units Completed and in Process
The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.
| Work in Process—Assembly Department | |||
|---|---|---|---|
| Bal., 6,000 units, 45% completed | 16,290 | To Finished Goods, 138,000 units | ? |
| Direct materials, 141,000 units @ $1.5 | 211,500 | ||
| Direct labor | 292,800 | ||
| Factory |
113,925 | ||
| Bal., ? units, 55% completed | ? |
Cost per equivalent units of $1.50 for Direct Materials and $2.90 for Conversion Costs.
a. Based on the above data, determine the different costs listed below.
If required, round your interim calculations to two decimal places.
| 1. Cost of beginning work in process inventory completed this period | $ |
| 2. Cost of units transferred to finished goods during the period | $ |
| 3. Cost of ending work in process inventory | $ |
| 4. Cost per unit of the completed beginning work in process inventory (Rounded to the nearest cent.) |
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