costing, and has three unique phases for their products (Phase A, B, and C). At the end of the period, 14,000 physical units had been worked on in Phase B. The equivalent units were 12,800. The following costs were incurred in Phase B for
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.
Peregrin Pastries utilizes
| Costs transferred from Phase A | $10,200 |
| Direct materials used | $4,900 |
| Direct labor |
$6,200 |
| Applied manufacturing |
$7,850 |
What is the cost per unit after completing Phase B? Please round your answer to two decimal places.
Equivalent cost per unit= Total amount of cost incurred/ number of equivalent units.
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