In this month's production of roasted peanuts, Windsor added $3,450 of DM costs and $3,541 of conversion costs. Beginning WIP Inventory for the roasting process included $600 for DM costs and $810 for conversion costs. A total of 4,500 equivalent units of peanuts were completed this month in terms of DM resources. The total equivalent units for conversion costs were 4,580. How much total cost does Windsor need to account for this month? Total costs to account for Determine the company's cost per equivalent for both DM and conversion costs, recognizing that Windsor uses the weighted-average method of process costing. (Round answers to 2 decimal places, eg. 15.25.) Cost per equivalent unit $ DM $ Conversion Cost I
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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