Percent Complete for Direct Percent Complete for Assembly Department Units Materials Beginning work in process inventory Units started this period 2,000 60% Conversion 40% 10,000 Units completed and transferred out 9,000 Ending work in process inventory 3,000 80% 30% Cost of beginning work in process Direct materials Conversion Costs added this month Direct materials Conversion $ 996 585 $1,581 10,404 12,285 22,689 QS 20-15A (Static) FIFO: Cost per EUP LO C2 Calculate the Assembly department's cost per equivalent unit of production for materials and for conversion for November. Use the FIFO method. Numerator: Costs to be allocated Direct Materials $ Conversion $ Cost per equivalent unit of production-FIFO Denominator: Equivalent units of production 996 / 585 / Cost per equivalent unit of production 0
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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