Egyptian Spa produces two different spa products: Relax and Refresh. The company uses three operations to manufacture the products: mixing, blending, and packaging. i (Click the icon to view the additional information.) Requirements The budgeted number of containers and budgeted direct materials cost for each product in May are: i (Click the icon for the budget information.) Requirement 1. Calculate the conversion cost rates for each department. Determine the formula and then calculate the conversion cost rate for each department. (Round the conversion cost rate to the nearest cent.) = Conversion cost rate Dond the requirements 1. Calculate the conversion cost rates for each department. 2. Calculate the budgeted cost of goods manufactured for Relax and Refresh for the month of May. 3. Calculate the cost per container for each product for the month of May. - X
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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