Q.17 Nongshin Company has two manufacturing processes for its instant noodles: frying noodles and packaging. Selected production and cost data of Nonsghin follow for November: Units Frying Department Packaging Department Beginning work-in-process, Oct. 31 4,700 8,200 Started in Nov. 77,000 Transferred in during Nov. 75,600 Completed and transferred out during Nov. 75,600 79,900 The direct materials are added at the end of frying department and at the beginning of packaging department. The conversion costs are evenly added throughout the manufacturing processes in both frying and packaging departments. On October 31, the Frying Department's ending Work-in-Process Inventory was 40% complete for conversion costs and the Packaging Department's ending Work-in-Process Inventory was 55% complete for conversion costs. The weighted-average method is used. In November, the Frying Department has $2,090 of direct materials costs to account for and $1,174 of conversion costs to account for, and the Packaging Department has $1,638 of direct material costs to account for and $1,984.50 of conversion costs to account for. Q17. Find the frying department’s equivalent units of production for direct materials costs. 9,500 10,500 11,500 12,500 Q18. Find the packaging department’s cost per equivalent unit of production for conversion costs. Round to the nearest cents. $0.15 $0.18 $0.21 $0.24 Q19. Find total costs of the units completed and transferred out from the frying department to the packaging department. $3,040 $3,240 $3,440 $3,640
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.
Q.17
Nongshin Company has two manufacturing processes for its instant noodles: frying noodles and packaging. Selected production and cost data of Nonsghin follow for November:
|
Units |
Frying Department |
Packaging Department |
|
Beginning work-in-process, Oct. 31 |
4,700 |
8,200 |
|
Started in Nov. |
77,000 |
|
|
Transferred in during Nov. |
|
75,600 |
|
Completed and transferred out during Nov. |
75,600 |
79,900 |
The direct materials are added at the end of frying department and at the beginning of packaging department. The conversion costs are evenly added throughout the manufacturing processes in both frying and packaging departments.
On October 31, the Frying Department's ending Work-in-Process Inventory was 40% complete for conversion costs and the Packaging Department's ending Work-in-Process Inventory was 55% complete for conversion costs. The weighted-average method is used.
In November, the Frying Department has $2,090 of direct materials costs to account for and $1,174 of conversion costs to account for, and the Packaging Department has $1,638 of direct material costs to account for and $1,984.50 of conversion costs to account for.
Q17. Find the frying department’s equivalent units of production for direct materials costs.
|
9,500 |
||
|
10,500 |
||
|
11,500 |
||
|
12,500 |
-
Q18. Find the packaging department’s cost per equivalent unit of production for conversion costs. Round to the nearest cents.
$0.15
$0.18
$0.21
$0.24
-
Q19. Find total costs of the units completed and transferred out from the frying department to the packaging department.
$3,040
$3,240
$3,440
$3,640
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
