drews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department: Equivalent units of production—direct materials 113,000 EUP Equivalent units of production—conversion 97,700 EUP Costs in beginning Work in Process—direct materials $ 61,500 Costs in beginning Work in Process—conversion $ 45,200 Costs incurred in February—direct materials $ 520,000 Costs incurred in February—conversion $ 653,100
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.
Andrews Corporation uses the weighted-average method of
| Equivalent units of production—direct materials | 113,000 | EUP | |
| Equivalent units of production—conversion | 97,700 | EUP | |
| Costs in beginning Work in Process—direct materials | $ | 61,500 | |
| Costs in beginning Work in Process—conversion | $ | 45,200 | |
| Costs incurred in February—direct materials | $ | 520,000 | |
| Costs incurred in February—conversion | $ | 653,100 | |
The cost per equivalent unit of production for conversion is:
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