Groupe Corporation manufactures a product in a two-stage production process (Department A and Department B). The following data is given for Department A for November: Units for November: Work in process, beginning inventory November 1 300 units Direct materials (100% complete) Conversion (30% complete) Units started in November: 2,200 units Work in process, ending inventory November 30 500 units Direct materials (100% complete) Conversion (50%) Costs for November: Work in process, beginning inventory Direct materials $7,100 Conversion $4,525 Costs added during November: Direct materials $70,400 Conversion $40,100 Round to two decimal places. Required: a. How many units were transferred to Finishing? b. How many units were started and completed during November? c. How many equivalent units of conversion does it take to complete the beginning inventory in the current period?
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.
Groupe Corporation manufactures a product in a two-stage production process (Department A
and Department B). The following data is given for Department A for November:
Units for November:
Work in process, beginning inventory November 1 300 units
Direct materials (100% complete)
Conversion (30% complete)
Units started in November: 2,200 units
Work in process, ending inventory November 30 500 units
Direct materials (100% complete)
Conversion (50%)
Costs for November:
Work in process, beginning inventory
Direct materials $7,100
Conversion $4,525
Costs added during November:
Direct materials $70,400
Conversion $40,100
Round to two decimal places.
Required:
a. How many units were transferred to Finishing?
b. How many units were started and completed during November?
c. How many equivalent units of conversion does it take to complete the beginning inventory in
the current period?
d. What is the FIFO cost assigned to the ending inventory? (Show the calculation of cost per
unit).
e. What is the FIFO cost assigned to the units transferred out?
f. Show the T-account for the forming process.
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