For the Assembly Department, compute the following: a. Equivalent units of production for each cost component EU for transferred in EU for direct materials EU for conversion ox b. Cost per EUP for each cost component Note: Round your answers to two decimal places. 80.000 x 79,000 x Transferred in cost per EUP S Material cost per EUP S Conversion cost per EUP S c. Cost transferred to Finished Goods Inventory Note: Round your final answer to the nearest whole dollar. Note: Use the rounded rates from part (b) in your calculations. $ 106,088 1.01 X 0.13 ✓ 0.17 x
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.
A-7
![WA EUP: second department
Angerstein Inc. produces calendars in a two-process, two-department operation. In the Printing Department, calendars are printed and cut. In the Assembly Department, the material received from Printing is assembled into individual calendars and bound. Each department
maintains its own work in Process Inventory, and costs are assigned using weighted average process costing. In Assembly, conversion costs are incurred evenly throughout the process, direct material is added at the end of the process. For September, the following production and
cost information is available for the Assembly Department:
.
• Beginning WIP Inventory: 5,000 calendars (30 percent complete as to conversion); transferred in cost, $7.550: conversion cost, $1.093
• Transferred in during September: 80,000 calendars
• Current period costs: transferred in. $80.000; direct material, $10,270: conversion. $13,991
• Ending WIP Inventory: 6,000 calendars (80 percent complete as to conversion)
For the Assembly Department, compute the following:
a. Equivalent units of production for each cost component
EU for transferred in
EU for direct materials
80,000 x
79,000✔
0x
EU for conversion
b. Cost per EUP for each cost component
Note: Round your answers to two decimal places.
1.01 X
Transferred in cost per EUP $
Material cost per EUP
S
0.13 ✔
Conversion cost per EUP
S
0.17 X
c. Cost transferred to Finished Goods Inventory
Note: Round your final answer to the nearest whole dollar.
Note: Use the rounded rates from part (b) in your calculations.
$ 106,088
x
d. Cost of ending WIP Inventory
Note: Round your final answer to the nearest whole dollar.
Note: Use the rounded rates from part (b) in your calculations.
$ 6,816
x
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