Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired individuals. Manufacturing is a one-step process where the bands are cut and sewn. This is the information related to this year’s production: Units to Account For Units Materials Conversion Beginning work in process inventory 500 500 250 Started 19,500 Total units to accounted for 20,000 Ending inventory was 100% complete as to materials and 80% complete as to conversion, and the total materials cost is $54,000 and the total conversion cost is $34,010. Using the weighted-average method, what are the unit costs if the company transferred out 15,000 units? If required, round final answers to two decimal places. Cost per unit Materials $fill in the blank 1 Conversion $fill in the blank 2 Using the weighted-average method, what is the value of the inventory transferred out and the value of the ending WIP inventory? Inventory transferred out $fill in the blank 3 Ending WIP inventory $fill in the blank 4
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.
Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired individuals. Manufacturing is a one-step process where the bands are cut and sewn. This is the information related to this year’s production:
| Units to Account For | Units | Materials | Conversion |
| Beginning work in process inventory | 500 | 500 | 250 |
| Started | 19,500 | ||
| Total units to accounted for | 20,000 |
Ending inventory was 100% complete as to materials and 80% complete as to conversion, and the total materials cost is $54,000 and the total conversion cost is $34,010.
Using the weighted-average method, what are the unit costs if the company transferred out 15,000 units? If required, round final answers to two decimal places.
| Cost per unit |
|
| Materials | $fill in the blank 1 |
| Conversion | $fill in the blank 2 |
Using the weighted-average method, what is the value of the inventory transferred out and the value of the ending WIP inventory?
| Inventory transferred out | $fill in the blank 3 |
| Ending WIP inventory | $fill in the blank 4 |
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