Gougem Oil Company processes gasoline. At April 1 of the current year 4,200 units were 2/3 completed in the Blending Department. During April, 20,000 units were transferred into the Blending Department from the Refining Department. During April the units in process at the beginning of the month were completed. Of the 20,000 units entering the department, all were completed except 6,400 units that were 2/5 completed. The equivalent units for conversion costs for April for the Blending Department was computed as follows: Equivalent Units of Production for April—Blending Dept. To process units started and completed in April (17,800 – 4,200) 13,600 To process units in inventory at April 30 (6,400 x 3/5) 3,840 Equivalent Units of Production for April 17,440 A) Ussing excel, compute the number of physical units to be accounted for during the period and show how those physical units are accounted for. B) Using Excel, list any errors that you find in the calculation of EUP shown above. If no errors are found write “no errors”. If you find any errors prepare a corrected computation of EUP showing all work. Be sure to include your name on your Excel document.
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.
Gougem Oil Company processes gasoline. At April 1 of the current year 4,200 units were 2/3 completed in the Blending Department. During April, 20,000 units were transferred into the Blending Department from the Refining Department. During April the units in process at the beginning of the month were completed. Of the 20,000 units entering the department, all were completed except 6,400 units that were 2/5 completed. The equivalent units for conversion costs for April for the Blending Department was computed as follows:
Equivalent Units of Production for April—Blending Dept.
To process units started and completed in April (17,800 – 4,200) 13,600
To process units in inventory at April 30 (6,400 x 3/5) 3,840 Equivalent Units of Production for April 17,440
A) Ussing excel, compute the number of physical units to be accounted for during the period and show how those physical units are accounted for.
B) Using Excel, list any errors that you find in the calculation of EUP shown above. If no errors are found write “no errors”. If you find any errors prepare a corrected computation of EUP showing all work. Be sure to include your name on your Excel document.
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