Items 59 and 60 are based on the following information: Kupasin Textiles Company manufactures a variety of natural fabrics for the clothing industry. The following data pertain to the Weaving Department for the month of September. Weighted average FIFO Equivalent units of direct materials 120,000 80,000 Equivalent units of conversion 104,000 88,000 Units completed and transferred out during September 100,000 100,000 The cost data for September is as follows: 40,000 units Work in process, September 1 Direct material P 188,000 Conversion 88,800 Cost incurred during September Direct material P 328,000 545,600 Conversion 59. Under the average method, how much is the cost of units transferred out during September. A. P1,040,000 B. P 1,030,000 C. P 1,043,600 D. P 894,800 60. Under the FIFO method, what is the cost of work in process ending inventory during September. A. P110,400 B. P 106,800 C. P 120,400 D. P 255,600
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.
Items 59 and 60 are based on the following information:
Kupasin Textiles Company manufactures a variety of natural fabrics for the clothing industry. The
following data pertain to the Weaving Department for the month of September.
Weighted average FIFO
Equivalent units of direct materials 120,000 80,000
Equivalent units of conversion 104,000 88,000
Units completed and transferred out during September 100,000 100,000
The cost data for September is as follows:
Work in process, September 1 40,000 units
Direct material P 188,000
Conversion 88,800
Cost incurred during September
Direct material P 328,000
Conversion 545,600
59. Under the average method, how much is the cost of units transferred out during September.
A. P1,040,000 B. P 1,030,000 C. P 1,043,600 D. P 894,800
60. Under the FIFO method, what is the cost of work in process ending inventory during September.
A. P110,400 B. P 106,800 C. P 120,400 D. P 255,600
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