he charges to Work in Process-Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department 21,480 To Finished Goods, 138,000 units 183,300 Bal., 6,000 units, 60% completed Direct materials, 141,000 units e $1.3 Direct labor Factory overhead 406,000 157,955 Bal. 2 units, 35% completed Determine the following:
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.
![### Work in Process—Assembly Department Analysis
This document outlines the charges to the Work in Process—Assembly Department for a specific period, alongside production information. All direct materials are placed in process at the beginning of production.
#### Initial Data
- **Beginning Balance:**
- 6,000 units, 60% completed
- **Cost:** $21,480
- **Costs Added:**
- Direct Materials (141,000 units @ $1.30 each): $183,300
- Direct Labor: $406,000
- Factory Overhead: $157,955
- **Ending Balance:**
- 2 units, 35% completed
- **Transferred to Finished Goods:** 138,000 units
#### Determine the Following:
**a. Number of units in work in process inventory at the end of the period:**
Input the number of units.
**b. Equivalent units of production for direct materials and conversion:**
Fill out the table based on the information provided.
**Equivalent Units of Production Table**
| Description | Equivalent Units Direct Materials | Equivalent Units Conversion |
|--------------------------|------------------------------------|-----------------------------|
| Inventory in process, beginning | | |
| Started and completed | | |
| Transferred to finished goods | | |
| Inventory in process, ending | | |
| Total units | | |
**c. Costs per equivalent unit for direct materials and conversion:**
Calculate and round your answers to the nearest cent.
**Costs Per Equivalent Unit Table**
- Direct Materials: $[Input Value]
- Conversion: $[Input Value]
**d. Total cost of the units started and completed during the period:**
Input the total cost.
Instructions are given to input calculations and estimates in the provided fields, noting that some fields may not require entries if no data or calculations are needed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e354563-adfc-4b55-ab86-ec3b1b4096f7%2F347cfe85-b1b6-4ede-baaa-319c86b3b912%2F40mk50d_processed.png&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
