Mirada Company manufactures handheld calculators and has the following information available for the month of July Work in process, July 1 (100% complete for materials, 25% for conversion) Direct materials Conversion cost Number of units started July costs Direct materials Conversion cost Work in process, July 31 (100% complete for materials, 10% for conversion) 132,000 units $ 246,000 $ 400,000 226,000 units $ 432,000 $ 490,000 150,000 units E3-16 (Algo) FIFO [LO 3-4] Required: Using the FIFO method of process costing, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate cost per equivalent unit. 4. Reconcile the total cost of work in process. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the FIFO method of process costing, reconcile the number of physical units worked on during the period. Beginning Units Physical Units 132,000 Units Completed Physical Units Units Started Total Units 226,000 Ending Units 358,000 Total Units 0
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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![Mirada Company manufactures handheld calculators and has the following information available for the month of
July:
Work in process, July 1
(100% complete for materials, 25% for conversion)
Direct materials
Conversion cost
Number of units started
July costs
Direct materials
Conversion cost
Work in process, July 31
(100% complete for materials, 10% for conversion)
132,000 units
$ 246,000
$ 400,000
226,000 units
$ 432,000
$ 490,000
150,000 units
E3-16 (Algo) FIFO [LO 3-4]
Required:
Using the FIFO method of process costing, complete each of the following steps:
1. Reconcile the number of physical units worked on during the period.
2. Calculate the number of equivalent units.
3. Calculate cost per equivalent unit.
4. Reconcile the total cost of work in process.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3 Required 4
Using the FIFO method of process costing, reconcile the number of physical units worked on during the period.
Beginning Units
Physical Units
Physical Units
Units Started
Total Units
132,000 Units Completed
226,000 Ending Units
358,000 Total Units
0
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