Problem 7 - Average Costing, Unit cost Rason- Ng- Rason Company manufactured product Dina-Tuto in two-stage production cycle in Departments X and Y and uses the weighted average method. Materials are added at the start of the process in Department Y, Conversion costs of Department Y were 50% complete as to the 6,000 units in the beginning work in process and 75% complete as to the 8,000 units in the ending work in process. Twelve thousand units were completed and transferred our of Department Y in February. An analysis of the costs relating to work in process (WIP) and production activity in Department Y foe February is as follows: C O S TS Transferred In Materials Labor & FOH work in process, February 1, costs P12,000 P2,500 P1,000 Added costs in February 29,000 5,500 5,000 The total cost per equivalent unit transferred our for February of Dina-Tuto rounded to the nearest centavo is?
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.
Problem 7 - Average Costing, Unit cost
Rason- Ng- Rason Company manufactured product Dina-Tuto in two-stage production cycle in Departments X and Y and uses the weighted average method. Materials are added at the start of the process in Department Y, Conversion costs of Department Y were 50% complete as to the 6,000 units in the beginning work in process and 75% complete as to the 8,000 units in the ending work in process. Twelve thousand units were completed and transferred our of Department Y in February. An analysis of the costs relating to work in process (WIP) and production activity in Department Y foe February is as follows:
C O S TS
Transferred In Materials Labor & FOH
work in process, February 1, costs P12,000 P2,500 P1,000
Added costs in February 29,000 5,500 5,000
The total cost per equivalent unit transferred our for February of Dina-Tuto rounded to the nearest centavo is?
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