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?

Q: Shipping of Costs for a Shipping Department

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Q: Define Work-in-process inventory.

A: Definition:   Inventory refers to the raw materials, work-in-process, and the finished goods…

Q: evaluation of and synthesis of key costing techniques

A: Costing techniques are important tools used by businesses to analyze and control their costs.

Q: Describe the term direct costing.

A: Direct costing: It is the method wherein, the variable manufacturing costs are allocated to…

Q: Define the term Raw-materials- inventory?

A: Inventory is the materials such as raw materials, finished products, in-process goods that are…

Q: Describe the term cost of the direct materials.

A: Cost:  Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

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Q: diffentiate between contract costing and service costing

A: Contract costing is the costing method adopted to do the cost accounting for a specific contract…

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A: Direct Cost:- Costs that are directly related to the production of goods are called direct costs…

Q: Define the term process-costing system.

A:

Q: How are costs allocated in an ABC system?

A: ABC system means activity-based costing.

Q: Define fixed overhead costs.

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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.