3,875 600 800 4,600 4,450 Total costs to account for Determine the company's cost per equivalent unit for both DM and conversion costs. For the current month. Cost per equivalent unit Direct erials Conversion Costs Total *** Direct Materials Conversion Costs A A 001 ✰
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.
![## Using Excel to Calculate Cost per Equivalent Unit
### Problem Statement
Funenstiens roasts peanuts and uses the FIFO method of process costing for their roasting process. Below is the information provided for this month's production:
- **Direct materials costs added to production:** $3,400
- **Conversion costs added to production:** $3,875
- **Direct materials costs in beginning inventory:** $600
- **Conversion costs in beginning inventory:** $800
### Equivalent Units Completed During the Month
- For Direct Materials: 4,600 units
- For Conversion Costs: 4,450 units
### Student Work Area
#### Task
1. **Input the required mathematical formulas** or functions using cell references to solve the problem.
#### Required Calculations
- **Total Costs to Account For:**
- **Direct Materials:** [Cell for calculation]
- **Conversion Costs:** [Cell for calculation]
- **Total:** [Cell for calculation]
- **Determine the Company's Cost per Equivalent Unit:**
- Calculate for both Direct Materials (DM) and Conversion Costs for the current month.
- **Cost per Equivalent Unit Formula:**
- Direct Materials: [Calculation based on input]
- Conversion Costs: [Calculation based on input]
This section encourages students to use Excel’s built-in functions to compute cost data efficiently, practicing real-world financial analysis skills using process costing principles.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d5d8571-a566-48dd-93ba-2ac5e7bc1950%2F042cc7d5-49c7-4f5b-9323-2693cc7dfbbc%2Fwcg8pu_processed.jpeg&w=3840&q=75)
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