Last month, the painting department of Surfaces Company started 20,000 units into production. The department had 6,000 units in process at the beginning of the month and these were 30% complete with respect to conversion costs. There were 8,000 units in process at the end of the month, which were 40% complete with respect to conversion costs. A total of 18,000 units were completed and transferred to the next department during the month. Under the weighted-average method, what would the equivalent units of production for conversion costs for the month be?, OA. 23,000 OB. 18,800 OC. 21,000 OD. 21,200
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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