Finishing department in the Gores Factory for the month of June. Gores Factory uses the weighted-average method of inventory costing. UnitsDirect Materials Percent CompleteConversion Percent CompleteBeginning work in process inventory5,00070%25%Units started and completed40,000 Completed and transferred out45,000 Ending work in process inventory4,00040%10% Production cost information for the Finishing department follows. Beginning work in process Direct materials$ 7,350 Conversion3,125$ 10,475Costs added this period Direct materials$ 96,975 Conversion79,470$ 176,445 (a) Compute the number of equivalent units of production for both direct materials and conversion using the weighted average method. (b) Compute cost per equivalent unit for both direct materials and conversion. (c) Using the weighted-average method, assign June’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory. Please avoid image with solutions thank you
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.
Finishing department in the Gores Factory for the month of June. Gores Factory uses the weighted-average method of inventory costing.
UnitsDirect Materials Percent CompleteConversion Percent CompleteBeginning work in process inventory5,00070%25%Units started and completed40,000 Completed and transferred out45,000 Ending work in process inventory4,00040%10%
Production cost information for the Finishing department follows.
Beginning work in process Direct materials$ 7,350 Conversion3,125$ 10,475Costs added this period Direct materials$ 96,975 Conversion79,470$ 176,445
(a) Compute the number of equivalent units of production for both direct materials and conversion using the weighted average method. (b) Compute cost per equivalent unit for both direct materials and conversion. (c) Using the weighted-average method, assign June’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory.
Please avoid image with solutions thank you
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