Question 1 RDX uses a process cost system and the FIFO cost flow assumption. Production begins in the Crafting Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On May 1, the beginning work in process inventory consisted of 10,000 units, which were 60% complete and had a cost of $120,000. During May, the following occurred: Materials added Conversion costs incurred Units completed and transferred out in May Units in ending work in process May 31 (20% complete) $315,000 $66,000 45,000 25,000 Required: Prepare a Production Report for Taco Ranch, in good form, which should include: i. A reconciliation of the physical flow of units. ii. iii. iv. The equivalent units for the period. The cost per equivalent unit. Assignment of costs to beginning work in process, units started and completed and 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.
step by step please. parts i-iv
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