Dimahirap company adds all materials at the beginning of the process in the first department. Conversion costs were 75% complete as to 8,000 units in Work in process, beginning and 50% complete as to 6,000 units in Work in process, end. During the month, 12,000 units were completed and transferred to the next department. Analysis of the costs relating to production for october follows: work in process beginning: materials 9,600, conversion cost 4,800; costs added this month: materials 15,600, conversion cost 14,400. How much is the cost per equivalent unit for the month using fifo costing?
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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