mran Corporation uses the weighted-average method in its process costing system. The ‘B’ Department is the second department in its production process. The data below summarize the department’s operations in January. Units Percent Complete with Respect to Conversion Beginning work in process inventory...................................................... 6,900 60% Transferred in from the prior department during January..................... 93,900 Completed and transferred to the next department during January...... 86,200 Ending work in process inventory........................................................... 14,600 40% The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was Rs. 20,174 and a total of Rs. 588,210 in conversion costs were incurred in the department during January. The cost per equivalent unit (single unit cost) for conversion costs for January in the Molding Department is closest to:
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.
Imran Corporation uses the weighted-average method in its
Units
Percent Complete with Respect to Conversion
Beginning work in process inventory......................................................
6,900
60%
Transferred in from the prior department during January.....................
93,900
Completed and transferred to the next department during January......
86,200
Ending work in process inventory...........................................................
14,600
40%
The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was Rs. 20,174 and a total of Rs. 588,210 in conversion costs were incurred in the department during January.
The cost per equivalent unit (single unit cost) for conversion costs for January in the Molding Department is closest to:
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