MediSecure, Inc., produces clear plastic containers for pharmacies in a process that starts in the MoldingDepartment. Data concerning that department’s operations in the most recent period appear below:Beginning work in process:Units in process ............................................................... 500Stage of completion with respect to materials ................. 80%Stage of completion with respect to conversion ............... 40%Units started into production during the month .................... 153,600Units completed and transferred out ................................... 153,700Ending work in process:Units in process ............................................................... 400Stage of completion with respect to materials ................. 75%Stage of completion with respect to conversion ............... 20%Required:MediSecure uses the FIFO method in its process costing system. Compute the equivalent units of production for the period for the Molding Department.
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.
MediSecure, Inc., produces clear plastic containers for pharmacies in a process that starts in the Molding
Department. Data concerning that department’s operations in the most recent period appear below:
Beginning work in process:
Units in process ............................................................... 500
Stage of completion with respect to materials ................. 80%
Stage of completion with respect to conversion ............... 40%
Units started into production during the month .................... 153,600
Units completed and transferred out ................................... 153,700
Ending work in process:
Units in process ............................................................... 400
Stage of completion with respect to materials ................. 75%
Stage of completion with respect to conversion ............... 20%
Required:
MediSecure uses the FIFO method in its
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