Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow: Work in process inventory, beginning Units started in 559,000 process Work in process. inventory, ending Units transferred 580,000 out Cost added during the month Units Materials 59,000 1. 2. 38,000 $ $ Labor Overhead 61,600 1,380,830 $ $ 15,700 194,530 $ $ The beginning work in process inventory was 85% complete with respect to materials and 70% complete with respect to labor and overhead. The ending work in process inventory was 65% complete with respect to materials and 45% complete with respect to labor and overhead. 29,100 Required: Assume that the company uses the FIFO method of accounting for units and costs. 222,320 Compute the equivalent units for the month for the first processing department. Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)
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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