he following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $74,550 of direct materials. ACCOUNT Work in Process—Forging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Nov. 1 Bal., 7,100 units, 70% completed 87,969 30 Direct materials, 65,000 units 663,000 750,969 30 Direct labor 78,270 829,239 30 Factory overhead 108,098 ? 937,337 30 Goods finished, ? units ? 30 Bal., 5,700 units, 90% completed ? Based on the above data, determine each of the following amounts. If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in November. $fill in the blank 1 b. Cost of units transferred to the next department during November. $fill in the blank 2 c. Cost of ending work in process inventory on November 30. $fill in the blank 3 d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places. Direct materials cost per equivalent unit $fill in the blank 4 Conversion cost per equivalent unit $fill in the blank 5 e. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit $fill in the blank 7 Change in conversion cost per equivalent unit
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.
The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $74,550 of direct materials.
| ACCOUNT Work in Process—Forging Department | ACCOUNT NO. | ||||||||
| Date | Item | Debit | Credit | Balance | |||||
| Debit | Credit | ||||||||
| Nov. | 1 | Bal., 7,100 units, 70% completed | 87,969 | ||||||
| 30 | Direct materials, 65,000 units | 663,000 | 750,969 | ||||||
| 30 | Direct labor | 78,270 | 829,239 | ||||||
| 30 | Factory |
108,098 | ? | 937,337 | |||||
| 30 | Goods finished, ? units | ? | |||||||
| 30 | Bal., 5,700 units, 90% completed | ? |
Based on the above data, determine each of the following amounts.
If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar.
a. Cost of beginning work in process inventory completed in November.
$fill in the blank 1
b. Cost of units transferred to the next department during November.
$fill in the blank 2
c. Cost of ending work in process inventory on November 30.
$fill in the blank 3
d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places.
| Direct materials cost per equivalent unit | $fill in the blank 4 |
| Conversion cost per equivalent unit | $fill in the blank 5 |
e. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places.
| Increase or Decrease | Amount | |
| Change in direct materials cost per equivalent unit |
|
$fill in the blank 7 |
| Change in conversion cost per equivalent unit |
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