lemon Enterprises produces premier raspberry jam. Output is measured in pints. Lemon uses the weighted-average method. During January, Lemon had the following production data: Required: a) Using the average weightage method, calculate the equivalent units for January. b) Calculate the unit cost for January. c) Assign costs to units transferred out and EWIP.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
lemon Enterprises produces premier raspberry jam. Output is measured in pints. Lemon uses the weighted-average method. During January, Lemon had the following production data:
Required:
a) Using the average weightage method, calculate the equivalent units for January.
b) Calculate the unit cost for January.
c) Assign costs to units transferred out and EWIP.
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