Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 3% of the good units. Data for December 2017 are as follows: WIP, beginning inventory 12/1/2017 Direct materials (100% complete) Conversion costs (80% complete) Started during December Completed and transferred out 12/31/2017 WIP, ending inventory 12/31/2017 Direct materials (100% complete) Conversion costs (60% complete) Costs for December: WIP, beginning Inventory: Direct materials Conversion costs Direct materials added Conversion costs added 22,700 units A. $3.86 B. $3.69 C.$4.04 D. $7.90 76,300 units 72,100 units 18,100 units $151,000 76,900 231,400 294,000 What is the total cost per equivalent unit using the weighted-average method of process costing? (Round any cost per unit calculations to the nearest cont.)
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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