poratic produces a product that passes through two departments. Fo December, the following equivalent unit schedule was prepared for the first department: Units completed Units in EWIP x Fraction complete: Materials Conversion Materials Conversion Materials 10,000 Equivalent units of output Costs assigned to beginning work-in-process: 2,000 Materials Conversion 12,000 $14,000 20,000 Manufacturing costs incurred during the month: $34,000 43,000 Conversion 10,000 500 10,500 Required: a. Compute the unit cost for December using the weighted average method. b. Determine the cost of goods transferred out. c. Determine the cost of ending work-in-process.
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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