Equivalent Units of Production and Related Costs The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department Bal., 4,000 units, 65% completed 16,960 To Finished Goods, 92,000 units ? Direct materials, 94,000 units @ $1.90 178,600 Direct labor 255,200 Factory overhead 99,310 Bal., ? units, 25% completed ? Determine the following: a. The number of units in work in process inventory at the end of the period. fill in the blank c22faaff8fe1f82_1 units b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0". Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs Whole Units Equivalent Units Direct Materials Equivalent Units Conversion Inventory in process, beginning fill in the blank 8dfc22010ff6022_1 fill in the blank 8dfc22010ff6022_2 fill in the blank 8dfc22010ff6022_3 Started and completed fill in the blank 8dfc22010ff6022_4 fill in the blank 8dfc22010ff6022_5 fill in the blank 8dfc22010ff6022_6 Transferred to finished goods fill in the blank 8dfc22010ff6022_7 fill in the blank 8dfc22010ff6022_8 fill in the blank 8dfc22010ff6022_9 Inventory in process, ending fill in the blank 8dfc22010ff6022_10 fill in the blank 8dfc22010ff6022_11 fill in the blank 8dfc22010ff6022_12 Total units fill in the blank 8dfc22010ff6022_13 fill in the blank 8dfc22010ff6022_14 fill in the blank 8dfc22010ff6022_15 c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent. Costs Per Equivalent Unit Direct Materials $fill in the blank a23f5e085fbbf9e_1 Conversion $fill in the blank a23f5e085fbbf9e_2 d. Cost of the units started and completed during the period.
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 and Related Costs
The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.
| Work in Process-Assembly Department | |||
|---|---|---|---|
| Bal., 4,000 units, 65% completed | 16,960 | To Finished Goods, 92,000 units | ? |
| Direct materials, 94,000 units @ $1.90 | 178,600 | ||
| Direct labor | 255,200 | ||
| Factory |
99,310 | ||
| Bal., ? units, 25% completed | ? |
Determine the following:
a. The number of units in work in process inventory at the end of the period.
fill in the blank c22faaff8fe1f82_1 units
b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0".
| Work in Process-Assembly Department | |||
| Equivalent Units of Production for Direct Materials and Conversion Costs | |||
| Whole Units |
Equivalent Units Direct Materials |
Equivalent Units Conversion |
|
| Inventory in process, beginning | fill in the blank 8dfc22010ff6022_1 | fill in the blank 8dfc22010ff6022_2 | fill in the blank 8dfc22010ff6022_3 |
| Started and completed | fill in the blank 8dfc22010ff6022_4 | fill in the blank 8dfc22010ff6022_5 | fill in the blank 8dfc22010ff6022_6 |
| Transferred to finished goods | fill in the blank 8dfc22010ff6022_7 | fill in the blank 8dfc22010ff6022_8 | fill in the blank 8dfc22010ff6022_9 |
| Inventory in process, ending | fill in the blank 8dfc22010ff6022_10 | fill in the blank 8dfc22010ff6022_11 | fill in the blank 8dfc22010ff6022_12 |
| Total units | fill in the blank 8dfc22010ff6022_13 | fill in the blank 8dfc22010ff6022_14 | fill in the blank 8dfc22010ff6022_15 |
c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.
| Costs Per Equivalent Unit | |
| Direct Materials | $fill in the blank a23f5e085fbbf9e_1 |
| Conversion | $fill in the blank a23f5e085fbbf9e_2 |
d. Cost of the units started and completed during the period.
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