Hache Corporation uses the weighted-average method in its process costing system. Welding Department, started the month with 17,300 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $7.720. An additional 89,600 units were started into production during the month and 92,600 units were completed in the Welding Department and transferred to the next processing department. There were 14,300 units in the ending work in process inventory of the Welding Department that were 90% complete with respect to conversion costs. A total of $203,000 in conversion costs were incurred the department during the month. The cost per equivalent unit for conversion costs for the month is closest to: O $1.995 O $1.998 O $2.304 $2.230
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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