Nonuniform Inputs, Transferred-In Cost Drysdale Dairy produces a variety of dairy products. In Department 12, cream (transferred in from Department 6) and other materials (sugar and flavorings) are mixed at the beginning of the process and churned to make ice cream. The following data are for Department 12 for August: Production: Units in process, August 1, 25% complete* 40,000 Units completed and transferred out 120,000 Units in process, August 31, 60% complete* 30,000 * With respect to conversion costs. 1. Prepare a physical flow schedule for the month. Drysdale Dairy Physical Flow Schedule For the Month of August Units to account for: Units in beginning work in process Units started Total units accounted for Units accounted for: Units transferred out Units in ending work in process Total units accounted for 2. Using the weighted average method, calculate equivalent units for the following categories: transferred-in, materials, and conversion. Transferred-In equivalent units Materials equivalent units Conversion equivalent units
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.
Nonuniform Inputs, Transferred-In Cost
Drysdale Dairy produces a variety of dairy products. In Department 12, cream (transferred in from Department 6) and other materials (sugar and flavorings) are mixed at the beginning of the process and churned to make ice cream. The following data are for Department 12 for August:
| Production: | |
| Units in process, August 1, 25% complete* | 40,000 |
| Units completed and transferred out | 120,000 |
| Units in process, August 31, 60% complete* | 30,000 |
| * With respect to conversion costs. |
1. Prepare a physical flow schedule for the month.
| Drysdale Dairy | |
| Physical Flow Schedule | |
| For the Month of August | |
| Units to account for: | |
| Units in beginning work in process | |
| Units started | |
| Total units accounted for | |
| Units accounted for: | |
| Units transferred out | |
| Units in ending work in process | |
| Total units accounted for |
2. Using the weighted average method, calculate equivalent units for the following categories: transferred-in, materials, and conversion.
| Transferred-In | equivalent units |
| Materials | equivalent units |
| Conversion | equivalent units |
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