Following on from the previous question, it is now the end of August 202X, and you are preparing a management report about the Simple Laptop product (SL-1) produced during the month. Using the weighted average method and the following information, calculate the total manufacturing cost of the units of SL-1 which were completed and transferred out during August 202X. Simple Laptop (SL-1) Cost and Production Data for August 202X: 0 laptops in beginning work in progress Commenced the manufacturing process for 10,000 Laptops 8,000 Laptops were completed and transferred out All materials are added at the beginning of the process On average, the work in progress units were 30% completed with respect to conversion costs Direct material costs for the month totaled $8,100,000 Conversion costs for the month totaled $602,000 Group of answer choices a) $6,760,000 b) $6,960,800 c) $7,040,000 d) $8,701,000
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.
Following on from the previous question, it is now the end of August 202X, and you are preparing a management report about the Simple Laptop product (SL-1) produced during the month. Using the weighted average method and the following information, calculate the total
Simple Laptop (SL-1) Cost and Production Data for August 202X:
- 0 laptops in beginning work in progress
- Commenced the manufacturing process for 10,000 Laptops
- 8,000 Laptops were completed and transferred out
- All materials are added at the beginning of the process
- On average, the work in progress units were 30% completed with respect to conversion costs
- Direct material costs for the month totaled $8,100,000
- Conversion costs for the month totaled $602,000
Group of answer choices
a) $6,760,000
b) $6,960,800
c) $7,040,000
d) $8,701,000
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