Great Pasta Company manufactures a single product that goes through two processes - mixing and cooling, The following data pertains to the Mixing Department for September. Work-in-process Inventory September1 29,000 units Conversion complete 70% Work-in-process inventory September30 15,000 units Conversion complete 50% Units started into production in September 69,000 Units completed and transferred out ? units Costs Work-in-process inventory September 1 Material P $116,000 Material Q 106,000 Conversion 116,000 Costs added in September Material P $174,000 Material Q 159,000 Conversion 342,100 Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process. a.Total equivalent units for Material Q under the weighted-average method are calculated to be: b.The cost of goods completed and transferred out under the weighted average method is calculated to be: c. Cost per equivalent unit for Material Q under the weighted average method is calculated to be:
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.
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