Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. Materials. Conversion costs: Assembly Polishing Special Finishing Packaging Total conversion costs Gag-Gift Commuter Sport Retirement Total $ 485,000 Cost Per Unit $ 205,000 118,400 50,400 164,000 $ 537,800 Gag-Gift (7,200 units) $ 18,000 Commuter (12,200 units) $122,000 Required: b. What is the cost per unit transferred to finished goods inventory for each of the four watches in October? (Round "Cost Per Unit" to 2 decimal places.) Sport (17,400 units) $ 261,000 Retirement (4,200 units) $ 84,000
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.
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