Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for Department A for the month of August is available. Work in process, August 1 (61% complete with respect to conversion) 17,800 Started in August 119,400 Completed 119,400 Work in process, August 31 (80% complete with respect to conversion) 17,800 Required: a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method. b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method. Equivalent Units_____ Materials Conversion Costs a. Using the weighted-average method ________ ______________ b. Using the FIFO method _________ ______________
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.
Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for Department A for the month of August is available.
Work in process, August 1 (61% complete with respect to conversion) 17,800
Started in August 119,400
Completed 119,400
Work in process, August 31 (80% complete with respect to conversion) 17,800
Required:
a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.
b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method.
Equivalent Units_____
Materials Conversion Costs
a. Using the weighted-average method ________ ______________
b. Using the FIFO method _________ ______________
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