ound solutions to part (1), part (2), and part (3). SOLUTION REQUIRED: PART (4) - Prepare a March cost reconciliation report for the Drying department for Ma
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.
I found solutions to part (1), part (2), and part (3).
SOLUTION REQUIRED: PART (4) - Prepare a March cost reconciliation report for the Drying department for March.
![Units
5,000
8,000
Percent Completed
Pulping Conversion
100%
20%
100%
25%
Work in process inventory, March 1....
Work in process inventory, March 31
$500
Pulping cost in ork in process inventory, March 1......
Units transferred to the next production department
157,000
Pulping cost added during March.....
Conversion cost added during March.
$102,450
$31,300
No materials are added in the Drying Department. Pulping cost represents the costs of the wet
fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department
in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount
of dried paper that is passed on to the Finishing Department.
Required:
1. Determine the equivalent units for March for pulping and conversion.
2.
Compute the costs per equivalent unit for March for pulping and conversion.
3.
Determine the total cost of ending work in process inventory and the total cost of units trans-
ferred to the Finishing Department in March.
4. Prepare a cost reconciliation report for the Drying Department for March.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F02f2202f-2b05-4491-8dc3-e5a65098e5aa%2F68c7ffbe-9b5d-4ec8-a02f-eb3b33bf2de7%2Fl1rj6xf_processed.png&w=3840&q=75)
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