Lebaum Corporation uses the weighted-average method in its process costing system. Data concerning the second processing department for the most recent month are listed below: Production data: Units in process, beginning: (materials 60% complete; conversion 20% complete) Units transferred in during the month from the preceding department: Units completed and transferred out during the month: Units in process, ending: (materials 40% complete; conversion 80% complete) Cost data: Costs transferred in during the month: Materials cost added during the month: 400 units Conversion costs incurred during the month: 1,200 units Work in process, beginning: (consists of cost transferred in, $12,400; materials cost, $9,078; and conversion cost, $7,514) 1,000 units ? units What is the cost per equivalent unit for materials? (Choose the closest answer.) $ 28,992 $ 126,000 $ 82,000 $ 108,000
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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