Materials are added at the start of the process in Cedar Company’s blending department, the first stage of the production cycle. The following information is available for July: Wip, July 1 (60% complete as to conversion cost 60,000 units Started in July 150,000 Transferred to the next department 110,000 Lost in production 30,000 Work in process, July 31 (50% complete as to conversion cost) 70,000 Under Cedar’s system, the costs incurred on the lost units are absorbed by the remaining good units. Using the weighted average method, what is the equivalent units of production for materials?
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.
Materials are added at the start of the process in Cedar Company’s blending department, the first stage of the production cycle.
The following information is available for July:
Wip, July 1 (60% complete as to conversion cost
60,000 units
Started in July
150,000
Transferred to the next department
110,000
Lost in production
30,000
Work in process, July 31 (50% complete as to conversion cost)
70,000
Under Cedar’s system, the costs incurred on the lost units are absorbed by the remaining good units. Using the weighted average method, what is the equivalent units of production for materials?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
