nd Betty DeRose, Inc. operates two departments, the handling department a the packaging department. During April, the handling department report ed the following information: % complete DM 60% 70% The cost of beginning work in process and the costs added during April were as follows: work in process, April 1 units started during April work in process, April 30 t work in process, April 1 costs added during April total costs units 27,000 59,000 34,000 DM $ 25,310 $190,720 $216,00 % complete conversion 85% 40% Conversion $191,175 $208,985 $400,160 Total cos $216,485 $399,705 $616,190 Calculate the equivalent units with respect to conversion costs using the FIFO process costing method.
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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