Elmoe has the following information for the month of October, its first month of operations: Work in Process October 1 Units completed & transferred out in October Work in process October 30 100% completed for materials 80% completed for conversion costs 120,000 32,000 Costs added in October Materials $145,900 $96,000 $108,000 Direct Labor Overhead
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.
a) Determine the equivalent units of production for October.
b) Determine the cost of the ending work-in-process.
c) Determine the cost of goods completed.
d) What is meant by the term equivalent full units?
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