In March, Department B transferred to Department C, 100,000 units costing P450,000. In addition to the above, Department C provided the following data: In process, beginning: 10,000 units 1/5 completed 6,000 units 5/6 completed During the month, Department C transferred to stockroom 96,000 units, while 2,000 units are finished and on hand. Remainder is divided as follows: One-third is 40% complete Two-third is 60% complete P47,010 30,807 Cost incurred during the month consist of materials P45,720, labor P15,090, and overhead P18,108. Materials are added 50% at the start of the process and 50% at the end of the process. Labor and overhead are applied uniformly to production. Required: With supporting schedule of cost of production report give the following: 1. EUP materials 5. Manufacturing cost per unit 6. Total cost of WIP, beginning 7. Total cost completed and transferred 8. Total cost of WIP, end 2. EUP conversion 3. Unit material cost 4. Unit conversion cost
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.
Make a solution to the given answer key. The answer should be:
1. 99,000
2. 100,600
3. 0.46
4. 0.33
5. 0.79
6. 84,467
7. 507,667
8. 88, 308
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