d. Novera, Limited reported the following physical units in work-in-process inventory for July in Department N: Work-in-process, July 1 (5% complete) Work-in-process, July 31 (90% complete) 76,000 63,000 Department N is the second stage of the process at Novera. Materials are added at the end of the process. Department N uses FIFO process costing. At the end of July, the equivalent units for transferred-in resources was 301,000 for calculating product cost. What were the equivalent units used in the production cost computation for the month of July for materials and conversion costs using the FIFO method? Multiple Choice
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.
A7
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Select the best answer for each of the following independent multiple-choice questions.
d. Novera, Limited reported the following physical units in work-in-process inventory for July in Department N:
Work-in-process, July 1 (5 % complete)
Work-in-process, July 31 (90% complete)
Department N is the second stage of the process at Novera. Materials are added at the end of the process. Department N uses FIFO process costing. At
the end of July, the equivalent units for transferred-in resources was 301,000 for calculating product cost. What were the equivalent units used in the
production cost computation for the month of July for materials and conversion costs using the FIFO method?
Multiple Choice
Materials 369,000; Conversion 415,100
Materials 314,000; Conversion 366,900
Materials 314,000; Conversion 298,900
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76,000
63,000
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