daho Lumber Company grows, harvests, and processes timber for use in construction. The following data pertain to the firm’s sawmill during November. Work in process, November 1 Direct material $ 98,500 Conversion 165,500 Costs incurred during November Direct material $ 598,700 Conversion 657,000 The equivalent units of activity for November were as follows: 8,300 equivalent units of direct material and 2,350 equivalent units of conversion activity. Required: Calculate the cost per equivalent unit, for both direct material and conversion, during November. Use weighted-average process costing. Cost per Equivalent Unit Direct material Conversion
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.
daho Lumber Company grows, harvests, and processes timber for use in construction. The following data pertain to the firm’s sawmill during November.
| Work in process, November 1 | |||
| Direct material | $ | 98,500 | |
| Conversion | 165,500 | ||
| Costs incurred during November | |||
| Direct material | $ | 598,700 | |
| Conversion | 657,000 | ||
The equivalent units of activity for November were as follows: 8,300 equivalent units of direct material and 2,350 equivalent units of conversion activity.
Required:
Calculate the cost per equivalent unit, for both direct material and conversion, during November. Use weighted-average
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