MULTIPLE CHOICE Glendale Company is using process costing system. The following were taken from the books for Department 2 for the month of June. Quality control inspection is done when the units are 80% completed and materials are added 100% after inspection. Units received Units completed and transferred Units in process, end (60% completed) Units lost (normal) 50,000 40,000 5,000 5,000 1. Equivalent production for materials is: a. 50,000 b. 45,000 с. 40,000 d. 43,000 2. Equivalent production for conversion costs is: a. 43,000 b. 44,000 C. 47,000 d. 45,000 Same data as in. 1 & 2, this time we assume that the units in process, end are 90% completed. 3. Equivalent production for materials is: а, 50,000. b. 45,000 C. 40,000 d. 43,000
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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