EXERCISE 3-7. Cost per Equivalent Unit [LO 3] The balance in beginning Work in Process at Bing Rubber Company for direct labor was $140,000. During the month of March, an additional $700,000 of direct labor was incurred, and 30,000 pounds of rubber were produced.At
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.
![EXERCISE 3-7. Cost per Equivalent Unit [LO 3]
The balance in beginning Work in Process at
Bing Rubber Company for direct labor was
$140,000. During the month of March, an
additional
$700,000 of direct labor was incurred, and
30,000 pounds of rubber were produced.At
the end of
March, 10,000 pounds of rubber were in
process and the units were 50 percent
complete. At the
start of March, the company had 6,000
pounds of rubber that were 40 percent
complete.
Required
Calculate the cost per equivalent unit for
labor assuming that labor is added uniformly
throughout
the production process.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F78a71c06-b101-405f-9f1c-5d16a9da7417%2F1d447c4a-0d98-48ed-8e8b-19c863757722%2F745muxw_processed.jpeg&w=3840&q=75)
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