es computer cases. All mat I to each product at the rat were no units in the Finish
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.
Problem No. 1(Cost Accounting)
Determine the following using the weighted average method of
1. Equivalent units of production for materials and conversion cost
2. unit costs, and;
3. Inventory values
![Problem no. 1
Spangenberg Products manufactures computer cases. All material is added at the start of
production and overhead is applied to each product at the rate of 70 percent of direct labor
cost. At the beginning of July, there were no units in the Finished Goods Inventory. The firm's
inventory cost records provide the following information:
Work in Process Inventory, 7/1
(70% complete as to labor)
Units started in production
Costs for July
Work in Process Inventory, 7/31
(60% complete as to labor)
Units
100,000
1,500,000
DM Cost
$ 750,000
5,650,000
DL Cost
$ 215,000
4,105,000
400,000
At the end of July, the cost of the Finished Goods Inventory was determined to be
$124,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae5a81bc-0af3-4c6d-8908-5cdd19c1fcc7%2Fded7b09f-df1a-4423-8db3-64738f37f94f%2Fww5r1kj_processed.jpeg&w=3840&q=75)
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