Longboard Company has a process costing system. All materials are introduced at the beginning of the process in Department One. The following information is available for the month of January: Units Work in process, July 1 (40% complete for conversion) 460 Started 2,300 Completed and transferred to Department 2 2,200 Work in process, July 31 (60% complete for conversion) 560 What are the equivalent units for the month of July if the company uses the FIFO method? Multiple Choice Materials 2,760 and Conversion 2,300 Materials 2,760 and Conversion 2,352 Materials 2,760 and Conversion 2,536 Materials 2,300 and Conversion 2,352 Materials 2,300 and Conversion 2,536
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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