Integrity Co. had the following production data (in units) for the month of July 2022: Work in process, beginning- 2,000 Started during the period- 90,000 Spoiled units- 8,000 Work in Process, ending- 6,000 Materials are added at the beginning of the process. As to conversion cost, the beginning WIP was 80% incomplete and ending Work In process was 70% completed. Spoilage is detected at the end of the process. What is the equivalent of units for July 2022 for conversion cost? (No need to put P sign and word units)
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.
Integrity Co. had the following production data (in units) for the month of July 2022:
Work in process, beginning- 2,000
Started during the period- 90,000
Spoiled units- 8,000
Work in Process, ending- 6,000
Materials are added at the beginning of the process. As to conversion cost, the beginning WIP was 80% incomplete and ending Work In process was 70% completed. Spoilage is detected at the end of the process.
What is the equivalent of units for July 2022 for conversion cost? (No need to put P sign and word units)
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