Hi there, Please note that I just need answers to the last three questions. The answers to question 1-3 could be found at: https://www.bartleby.com/questions-and-answers/hi-test-company-uses-the-weighted-average-method-of-process-costing-to-assign-production-costs-to-it/8098f80b-8835-4f14-87e3-506f89c95761 Thank you :) Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for the company’s first production process for September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to conversion; consists of $45,000 of direct materials cost and $56,320 conversion cost) $101,320 Costs incurred in September Direct materials . $375,000 Conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $341,000 Work in process inventory, September 30 (7,000 units, 100% complete with respect to direct materials, 40% complete with respect to conversion) . $ ? Units started in September . 28,000 Units completed and transferred out 23,000 Compute each of the following using the weighted-average method of process costing. 1. The number of equivalent units for materials for the month. 2. The number of equivalent units for conversion for the month. 3. The cost per equivalent unit of materials for the month. 4. The cost per equivalent unit for conversion for the month. 5. The total cost of goods transferred out. 6. The total cost of ending work in process inventory.
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.
Hi there,
Please note that I just need answers to the last three questions. The answers to question 1-3 could be found at:
https://www.bartleby.com/questions-and-answers/hi-test-company-uses-the-weighted-average-method-of-process-costing-to-assign-production-costs-to-it/8098f80b-8835-4f14-87e3-506f89c95761
Thank you :)
Hi-Test Company uses the weighted-average method of
products. Information for the company’s first production process for September follows. Assume that all
materials
are added at the beginning of this production process, and that conversion costs are added
uniformly
throughout the process. Work in process inventory, September 1 (2,000 units, 100% complete with respect to
direct materials, 80% complete with respect to conversion; consists of
$45,000 of direct materials cost and $56,320 conversion cost) $101,320
Costs incurred in September
Direct materials . $375,000
Conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $341,000
Work in process inventory, September 30 (7,000 units, 100% complete with respect
to direct materials, 40% complete with respect to conversion) . $ ?
Units started in September . 28,000
Units completed and transferred out 23,000
Compute each of the following using the weighted-average method of process costing.
1. The number of equivalent units for materials for the month.
2. The number of equivalent units for conversion for the month.
3. The cost per equivalent unit of materials for the month.
4. The cost per equivalent unit for conversion for the month.
5. The total cost of goods transferred out.
6. The total cost of ending work in process inventory.
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