In Mordica Company, total material costs are $37,000, and total conversion costs are $57,000. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs for materials and conversion costs. Round answers to 2 decimal places Materials cost per unit $ _____ Conversion cost per unit $ _____ Compute total manufacturing costs. Round answer to 2 decimal places Total manufacturing cost per 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.
In Mordica Company, total material costs are $37,000, and total conversion costs are $57,000. Equivalent units of production are materials 10,000 and conversion costs 12,000.
Compute the unit costs for materials and conversion costs. Round answers to 2 decimal places
Materials cost per unit $ _____
Conversion cost per unit $ _____
Compute total
Total manufacturing cost per unit $_____
The unit manufacturing cost is a combination of material cost per unit and conversion cost per unit. The material cost per unit can be calculated by dividing material cost by material equivalent unit and the conversion cost can be calculated by dividing conversion cost by the equivalent unit of conversion cost.
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