Equivalent Units of Production: Weighted average method Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: Drawing Department Winding Department Work in process, July 1 1,450 units, 60% completed 450 units, 35% completed Completed and transferred to next processing department during July 22,850 units 22,600 units Work in process, July 31 1,100 units, 60% completed 700 units, 30% completed Each department uses the Weighted average method. For each department, assume that direct materials are placed in process during production. a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department. Whole units fill in the blank 1 units Equivalent units of production fill in the blank 2 units b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department. Whole units fill in the blank 3 units Equivalent units of production fill in the blank 4 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.
Equivalent
Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows:
| Drawing Department | Winding Department | |
| Work in process, July 1 | 1,450 units, 60% completed | 450 units, 35% completed |
| Completed and transferred to next processing department during July |
22,850 units | 22,600 units |
| Work in process, July 31 | 1,100 units, 60% completed | 700 units, 30% completed |
Each department uses the Weighted average method. For each department, assume that direct materials are placed in process during production.
a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department.
| Whole units | fill in the blank 1 units |
| Equivalent units of production | fill in the blank 2 units |
b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department.
| Whole units | fill in the blank 3 units |
| Equivalent units of production | fill in the blank 4 units |
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