Knuckle makes t-shirts. It uses the FIFO approach to process costing and has a single-stage Work-In-Process department. Materials costs are put into the product at the start of production. Conversion costs (labor and overhead) go into the product gradually as the product is worked on. During March, 20,000 t-shirts were completed and transferred to finished goods storage. At the end of March, there were 4000 t-shirts that were 100% complete as to materials and 50% complete as to conversion still in Work-In-Process. At the beginning of March, there were 2000 t-shirts that were 100% complete as to materials and 25% complete as to conversion. Beginning inventory for March had a cost of $12,600 for materials and $3,300 for conversion and all of those costs had been put into those partially completed beginning inventory units during February. Costs this period (during March) were $132,000 for materials and $86,000 for conversion. What is the cost per equivalent unit with respect to materials for March? What is the cost per equivalent unit with respect to conversion for March? What are the Ending Inventory Work-in-Process Equivalent Units for March for materials and conversion respectively?
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.
Knuckle makes t-shirts. It uses the FIFO approach to
What is the cost per equivalent unit with respect to materials for March?
What is the cost per equivalent unit with respect to conversion for March?
What are the Ending Inventory Work-in-Process Equivalent Units for March for materials and conversion respectively?
On an Equivalent Units schedule (as taught in class) what are the Finish Beginning Inventory Work-in-Process Equivalent Units for March for materials and conversion respectively?
What is the total cost per equivalent unit for March?
What is the total cost of Work-in-Process Inventory as of March 31?
What is the correct
If Knuckle had elected to use the Weighted Average Method of Process Costing instead of the FIFO method, the total equivalent units for materials and conversion respectively would have been?
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