Required: 1. Calculate the equivalent units for each input category. Equivalent Units Direct Materials fill in the blank 1 Conversion fill in the blank 2 2. Calculate the unit cost for each category and in total. If required, round your answers to the nearest cent. Unit direct materials cost $fill in the blank 3 Unit conversion cost $fill in the blank 4 Total unit cost $fill in the blank 5 3. What if a different type of materials is also added at the end of the process (a candy wrapper), costing $4,800? Calculate the new unit cost. If required, round your answer to the nearest cent. $fill in the blank 6 per unit
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.
Nonuniform Inputs
Apeto Company produces premium chocolate candy bars. Conversion costs are added uniformly. For February, EWIP is 40 percent complete with respect to conversion costs. Materials are added at the beginning of the process. The following information is provided for February:
| Physical flow schedule: | ||
| Units to account for: | ||
| Units in BWIP | 0 | |
| Units started | 60,000 | |
| Total units to account for | 60,000 | |
| Units accounted for: | ||
| Units completed: | ||
| From BWIP | 0 | |
| Started and completed | 48,000 | 48,000 |
| Units in EWIP | 12,000 | |
| Total units accounted for | 60,000 |
|
Inputs |
|
| Direct Materials | Conversion Costs |
| $30,000 | $52,800 |
Required:
1. Calculate the equivalent units for each input category.
| Equivalent Units | |
| Direct Materials | fill in the blank 1 |
| Conversion | fill in the blank 2 |
2. Calculate the unit cost for each category and in total. If required, round your answers to the nearest cent.
| Unit direct materials cost | $fill in the blank 3 |
| Unit conversion cost | $fill in the blank 4 |
| Total unit cost | $fill in the blank 5 |
3. What if a different type of materials is also added at the end of the process (a candy wrapper), costing $4,800? Calculate the new unit cost. If required, round your answer to the nearest cent.
$fill in the blank 6 per unit
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