Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process. Work in process, June 1-50,000 units: Direct material: 100% complete, cost of . Conversion: 40% complete, cost of. Balance in work in process, June 1 Units started during June.. Units completed during June and transferred out to finished- goods inventory Work in process, June 30: Direct material: 100% complete ..1 Conversion: 60% complete Costs incurred during June: Direct material. Conversion costs: Direct labor. Applied manufacturing overhead. Total conversion costs... 1. Analysis of physical flow of units. 2. Calculation of equivalent units. Computation of unit costs. 3. 4. Analysis of total costs. $120,000 34,400 $154,400 200,000 190,000 Required: Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing. $492,500 $ 87,450 262,350 $349,800
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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