Information on equivalent production quantities and unit equivalent product costs of the production phase in a production company that applies the phase cost system are as follows: Production Completed and Transferred Equivalent Production Quantity: 30,000 Units Period End Stocks of Semi-finished Products Equivalent Production Quantity: Direct Primary Material and Material: 9.000 Units Equivalent Production Quantity: Direct Labor: 8,000 Units Equivalent Production Amount: General Production Expenses: 8.000 Units Unit equivalent product costs are 0.7 TL for direct raw materials and materials, 0.3 TL for direct labor and 0.5 TL for general production expenses. According to this information, what is the share of the total cost of the end-of-period semi-finished products? a) 2,400 TL B) 45.000 TL NS) 6.300 TL D) 12,700 TL TO) 4,000 TL
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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Information on equivalent production quantities and unit equivalent product costs of the production phase in a production company that applies the phase cost system are as follows:
Production Completed and Transferred
Equivalent Production Quantity: 30,000 Units
Period End Stocks of Semi-finished Products
Equivalent Production Quantity: Direct Primary Material and Material: 9.000 Units
Equivalent Production Quantity: Direct Labor: 8,000 Units
Equivalent Production Amount: General Production Expenses: 8.000 Units
Unit equivalent product costs are 0.7 TL for direct raw materials and materials, 0.3 TL for direct labor and 0.5 TL for general production expenses.
According to this information, what is the share of the total cost of the end-of-period semi-finished products?
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Equivalent production quantity refers to the quantity of the semi-finished that is converted into the equivalent quantity of finished goods by multiplying the quantity of semi-finished goods with the percentage of completion.
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