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., 9,000 units, 40% completed 72,360 To Finished Goods, 41,500 units ? Direct materials, 40,000 units @ $6.80 272,000 Direct labor 80,000 Factory overhead 40,450 Bal., ? units, 30% completed ? Determine the following: a. The number of units in work in process inventory at the end of the period. 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 Started and completed Transferred to finished goods Inventory in process, ending Total units c. Costs per equivalent unit for direct materials and conversion. Costs Per Equivalent Unit Direct Materials Conversion 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., 9,000 units, 40% completed | 72,360 | To Finished Goods, 41,500 units | ? |
| Direct materials, 40,000 units @ $6.80 | 272,000 | ||
| Direct labor | 80,000 | ||
| Factory overhead | 40,450 | ||
| Bal., ? units, 30% completed | ? |
Determine the following:
a. The number of units in work in process inventory at the end of the period.
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 | |||
| Started and completed | |||
| Transferred to finished goods | |||
| Inventory in process, ending | |||
| Total units |
c. Costs per equivalent unit for direct materials and conversion.
| Costs Per Equivalent Unit | |
| Direct Materials | |
| Conversion |
d. Cost of the units started and completed during the period.
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