Problem 4-29 Straightforward Weighted-Average Process Costing; Step-by-Step Approach (LO 4-3, 4-4, 4-5) [The following information applies to the questions displayed below.] Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process. Work in process, April 1-10,000 units: Direct material: 100 % complete, cost of Conversion: 20% complete, cost of Balance in work in process, April 1 Units started during April Units completed during April and transferred out to finished-goods inventory Work in process, April 30: Direct material: 100% complete. Conversion: 33 1/3 % complete Costs incurred during April: Direct material Conversion costs: Direct labor Applied manufacturing overhead Total conversion costs $ 22,000 4,500 $ 26,500 100,000 80,000 $198,000 $ 52,800 105,600 $158,400
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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Problem 4-29 Straightforward Weighted-Average Process Costing; Step-by-Step Approach (LO 4-3, 4-4,
4-5)
[The following information applies to the questions displayed below.]
Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April.
Conversion activity occurs uniformly throughout the production process.
Work in process, April 1-10,000 units:
Direct material: 100% complete, cost of
Conversion: 20% complete, cost of
Balance in work in process, April 1
Units started during April
Units completed during April and transferred
out to finished-goods inventory
Work in process, April 30:
Direct material: 100% complete
Conversion: 33 1/3 % complete
Costs incurred during April:
Direct material
Conversion costs:
Direct labor
Applied manufacturing overhead
Total conversion costs
$ 22,000
4,500
$ 26,500
100,000
80,000
$198,000
$ 52,800
105,600
$158,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd76dac07-7d2c-4fa7-b2df-10a6f0497c0c%2F28c8abb9-bcc3-4bf2-bf9d-4fc564ff5d56%2Fmwjyoo8_processed.jpeg&w=3840&q=75)
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