Jrgent Please Paceheco Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below ummarize the department's operations in January. Beginning work in process inventory Transferred in from the prior department during January Completed and transferred to the next department during January Ending work in process inventory Units 5,850 70% 59,750 Percent Complete with Respect to Conversion 57,550 8,050 40% The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $35,308 and a total of $560,004 in conversion costs were ncurred in the department during January. The cost per equivalent unit for conversion costs fo anuary in the Molding Department is closest to: Multiple Choice 59.599 $9.796 59.800 58.555
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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