Parsley Metal Company casts blades for the turbine engine. Within the Casting Department, an alloy is melted in a crucible and then poured into molds to produce the castings. On October 1, 800 pounds of the alloy were in process, 40% complete as to conversion. The work-in-process balance for these 8000 pounds was $350,000, determined as follows: direct materials-$190,000, conversion costs-$160,000. During October, the Casting Department was charged $250,000 for 9,500 pounds of alloy and $165,500 for direct labor. Factory overhead is applied to the department at 150% of direct labor. The department transferred 9,150 pounds of finished castings to the Machining Department. The October 31 inventory in process was 20% complete as to conversion. Based on the above information, please answer questions a) to f). a) Please prepare the Equivalent Unit Schedule. Beginning Started & Completed Completed & Transferred Out Ending Total Whole Units E E [1] (4) M (10) [13] Equivalent Unit Schedule Direct Materials EE 121 [0] [11] (14) Conversion Costs [3] [6] E [2] [12] (15)
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.
![Parsley Metal Company casts blades for the turbine engine. Within the Casting Department, an alloy is melted in a crucible and then poured into
molds to produce the castings. On October 1, 800 pounds of the alloy were in process, 40% complete as to conversion. The work-in-process
balance for these 8000 pounds was $350,000, determined as follows: direct materials-$190,000, conversion costs-$160,000.
During October, the Casting Department was charged $250,000 for 9,500 pounds of alloy and $165,500 for direct labor. Factory overhead is applied
to the department at 150% of direct labor. The department transferred 9,150 pounds of finished castings to the Machining Department. The October
-31 inventory in process was 20% complete as to conversion.
Based on the above information, please answer questions a) to f).
a) Please prepare the Equivalent Unit Schedule.
Beginning
Started &
Completed
Completed &
Transferred Out
Ending
Total
Whole
Units
E E
[1]
[4]
[10]
[13]
Equivalent Unit Schedule
Direct
Materials
[21
[5]
[8]
[11]
[14]
Conversion
Costs
(3)
E
[6]
(9)
[12]
E
[15]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fadbb1b-35da-411d-a96f-f1ca2485a97d%2Fd348838d-5bee-490e-844d-2b044832adad%2Fv7rc9sk_processed.jpeg&w=3840&q=75)
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