Department W had 2,940 units, one-third completed at the beginning of the period. There were 12,400 units transferred to Department X from Department W during the period, and 1,000 units were one-half completed at the end of the period. Assum the completion ratios apply to both direct materials and conversion costs, and the company uses the FIFO cost flow method. Determine the conversion equivalent units of production for the period for Department W. O a. 11,420 units O b. 16,340 units O c. 9,460 units O d. 11,920 units
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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