Saada Company uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March. Units Per cent Complete Beginning work in process inventory 3,700 20% Transferred in from the prior department during March 59,000 Ending work in process inventory 7,200 60% The Fitting Department's production report indicates that the cost per equivalent unit for conversion cost for March was £5.99. How much conversion cost was assigned to the units transferred out of the Fitting Department during March? Group of answer choices £353,410 £328,012.97 £375,573 £332,445
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.
Saada Company uses the weighted-average method in its
|
|
Units |
Per cent Complete |
|
Beginning work in process inventory |
3,700 |
20% |
|
Transferred in from the prior department during March |
59,000 |
|
|
Ending work in process inventory |
7,200 |
60% |
The Fitting Department's production report indicates that the cost per equivalent unit for conversion cost for March was £5.99.
How much conversion cost was assigned to the units transferred out of the Fitting Department during March?
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