Irfan Inc, instituted a new process in October, during which it started 10,000 units in Department A. Out of 10,000 units, 1,000 units, a normal number, were lost during the process: 7,000 were transferred to Department B: and 2,000 remained in work in process inventory at the end of the month 100% conmplete as to materials and 50% complete as to conversion cost

Q: What is equivalent production? Explain in terms of its effect on computed unit costs.

A: Process costing: It is a type of costing method, where the direct costs are accumulated and indirect…

Q: Distinguish between Period cost and Product cost? Give two examples of each cos

A: Classification of costs on the basis of functions:- 1. Product Cost 2. Period Cost

Q: Define Raw materials.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Define and give examples of the following terms: cost pool, cost object, and cost allocation (or…

A: Responsibility accounting: Responsibility refers to the several concepts and tools used by managers…

Q: What are the three types of manufacturing cost?

A: Manufacturing cost: Manufacturing cost is the sum total of various costs used or incurred in the…

Q: Which of the following is the step in which materials, labor, and overhead are detailed?

A: Direct material is the cost of the raw materials or parts that go directly into the production of a…

Q: Define equivalent units of production.

A: Definition:   Process costing: It is a method of cost accounting, which is used where the production…

Q: Explain the Problems in Cost Accounting Measurements?

A:

Q: Which of the following is a carefully predetermined cost that is usually expressed on a per unit of…

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: Classify the following cost drivers as structural, executional, or operational.

A: Classification of cost derives: Classification 0f the given cost drivers as structural, executional,…

Q: WildhorseCompany is considering two capital investment proposals. Estimates regarding each project…

A: The annual rate of growth that an investment is anticipated to provide is known as the internal rate…

Q: What is included in indirect materials and indirect labor ?

A:

Q: How is the Conversion Costs account used in JIT costing?

A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…

Q: The standards for direct materials are made up of which of the following components? a.variance…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Explain the measures of cost allocation.

A: The company incurs a different cost to provide goods and services to the customers. The entity…

Q: Need help to calculate the production cost per unit

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Define the following terms, and explain the relationship between them: (a) cost estimation, (b) cost…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: Which of the following formulae is used to calculate the cost per equivalent unit of production…

A: Equivalent units of production = Fully and partially completed units expressed as , % of fully…

Q: Formula for computing the unit cost of transferred out units

A: In the process costing the cost of each stage is added to the completed units in the same process.

Q: What is meant by the term equivalent units, with regards to process costing?

A: The  term  equivalent  unit  in process  costing  refers to

Q: Define the term Raw-materials- inventory?

A: Inventory is the materials such as raw materials, finished products, in-process goods that are…

Q: Define the term total costs.

A: Costs: Costs refer to the expenses incurred by the business in the procurement of the materials,…

Q: Describe the term cost of the direct materials.

A: Cost:  Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: Define unit costs.

A: Unit cost is the cost incurred by the company in the production, storage and selling of one unit of…

Q: What are the equivalent units of production?

A: Work-in-Process: It refers to the partially finished goods of a company waiting to be completed.…

Q: What is FIFO ? Explain FIFO in Process Costing in details.

A: The FIFO approach of process costing transfers expenses to the next division and then to completed…

Q: Different between raw materials, work in process and finished goods inventories

A: A manufacturing company generally have three types of inventories in its stock: Raw Materials Work…

Q: Provide the meaning of material cost and the procedure for estimation of material cost

A: Material costs are those costs incurred to produce a product or provide a service. Any product has a…

Q: How is the cost price of the finished product formed / shaped?

A: production of goods and providing of services various cost , These are variable and fixed , the…

Q: How is “yield” determined for a process manufacturer?

A: Process costs It is a method of cost accounting, which is used where the production is continuous,…

Q: Define the term classification of costs.

A: Classification of cost is the process of grouping of costs according to same characteristic. So,…

Q: What is the formula used to determine the amount of direct materials to be purchased?

A: Direct materials:   Direct materials are the materials and supplied that are directly consumed for…

Q: explain the concept of equivalent units in cost accounting

A: In process costing, some units may have fully finished but other units may still be under…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.