Narver Corporation uses the weighted-average method in its process costing system. Operating data for the lubricating department for the month of October appear below: beginning work in process inventory 6600 20% transferred in from the prior dept. during Oct. 40,100 completed and transferred to next dept. during Oct. 37,100 ending work in process inventory 9,600 80% What were the equivalent units for conversion costs in the lubricating department for October? 43,100 37,100 44,780 47,780
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.
Narver Corporation uses the weighted-average method in its
| beginning work in process inventory | 6600 | 20% |
| transferred in from the prior dept. during Oct. | 40,100 | |
| completed and transferred to next dept. during Oct. | 37,100 | |
| ending work in process inventory | 9,600 | 80% |
What were the equivalent units for conversion costs in the lubricating department for October?
|
43,100 |
||
|
37,100 |
||
|
44,780 |
||
|
47,780 |
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