Memo Company uses process costing. The materials are added when the process in 50% complete and conversion costs are added uniformly throughout the process following are the information during the period: Physical units: Work in process, beginning (60% complete) Started during the period Work in process, ending (45% complete) Costs: Work in process, beginning Materials Conversion costs Cost added during the period: Materials Conversion costs Answer the following with solution: 1. How much is the total costs to account for? 30,000 200,000 50,000 67,800 29,400 579,000 248,900 2. Using FIFO, what is the EUP (Equivalent Units of Production) for conversion cost? 3. Using FIFO, how much is the cost of work in process, ending? 4. Using Weighted Average, what is the EUP (Equivalent Units of Production) for materials 5. Using Weighted Average, how much is the cost of completed and transferred?
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.
SUBJECT: COST ACCOUNTING
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