Metlock Company had planned to complete its latest batch of pillar candles before year-end, but it simply ran out of time. During the period, 4,930 new candles were started in addition to the 880 that were already in process. At year-end, 4,530 candles were complete. Metlock adds all of its DM at the beginning of the process and uses the weighted-average method of process costing. Ending WIP Inventory this period was three-quarters complete for conversion costs. How many units does Metlock have in ending inventory this period? Units in ending WIP inventory
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.
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