Oslo Company produces large quantities of a standardized product. The following information is available for the first production department for May. Prepare a production cost report for this process using the weighted average method. Round "Cost per EUP" to 2 decimal places.) Direct MaterialsConversion Percent Percent Complete Complete Units Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory 6,300 23,500 22,200 7,600 100% 40% Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials $ 5,258 11,568 $ 16,826 401,590 497,192 898,782 Conversion $ 915,608 Total costs to account for
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.
![Oslo Company produces large quantities of a standardized product. The following information is available for the first
production department for May. Prepare a production cost report for this process using the weighted average method.
(Round "Cost per EUP" to 2 decimal places.)
Direct
MaterialsConversion
Percent
Percent
Units
Complete Complete
Beginning work in process
inventory
Units started this period
Completed and transferred out
Ending work in process inventory
6,300
23,500
22,200
7,600
100%
40%
Beginning work in process
inventory
Direct materials
$ 5,258
11,568 $ 16,826
Conversion
Costs added this period
Direct materials
401,590
497,192
Conversion
898,782
Total costs to account for
915,608
OSLO COMPANY–First Department
Production Cost Report – Weighted Average Method
For Month Ended May 31
Unit reconciliation:
Units to account for:
Total units to account for
Units accounted for:
Total units accounted for
Equivalent units of production (EUP) - weighted average method
Direct Materials
Conversion
%
%
Units
EUP
EUP
Complete
Complete
Equivalent Units of Production
Direct
Materials
Cost per equivalent unit of production
Conversion
Total costs
+ Equivalent units of production
Cost per equivalent unit of production (rounded to 2 decimals)
Cost Assignment
Costs
Costs
EUP
EUP
Cost per
Completed and transferred out
EUP
Total cost
EUP
Direct materials
Conversion
Ending work in process
Cost per
EUP
EUP
Total cost
Direct materials
Conversion
Total costs accounted for](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5dc9d2dd-35ab-4c84-a611-40f810db3ab6%2F37e31191-65fd-4e0d-aeb9-e7f3e374ffeb%2Fmkwnf89_processed.png&w=3840&q=75)
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