estion Completion Status: South River Chemicals Pty Ltd manufactures a product called Zybek. Direct materials are added at the beginning of the conversion activity occurs uniformly throughout the process. The following data pertain to the month of May. Costs Work in process, May 1 Costs incurred during May Total Equivalent units Total $41 250 $234 630 $275 880 Direct materials $16 500 $72 000 $88 500 12 000 Conversion costs $24 750 $162 630 $187 380 11 000 What are the unit costs for the period (rounded to two decimal places) assuming FIFO costing? O DM $7.25; CC $15.62 DM $5.90; CC $13.55 ODM $5.90; CC $15.62 O None of the given answers
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.
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