Holly Company has the following information for December 1 to December 31. All direct materials are 100% complete. Work-in-Process Beginning balance December 200 units, 201 complete for conversion Direct materials Direct labor Factory overhead. Property taxes Depreciation Utilities Indirect labor Ending balance December 31, 300 units, 40% complete Direct materials Conversion Equivalent Units Weighted Average $ 25,000 54,000 34,000 Required: 1. Calculate equivalent units using the weighted-average and FIFO methods. FIFO O Weighted-average method O FIFO method 6,000 32,000 18,000 4,000 30,818 Completed 800 units and transferred to finished goods inventory $ 142, 1861 2. Use the given information to determine whether Holly Company is using the FIFO or weighted-average method. The beginning balance of Work-in-Process (WIP) consists of $11,000 of direct materials and $14,000 of conversion costs.
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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