Seved Kenney Ca uses process costing lo account for the production of canned energy drinks Direct materials are added at the beginning of the proceSE and DEDON costs are incured unformy throughout the process Equivalent units have been calculated to be 19,200 units for materials and 16.000I BITE for comesion casts Begining inentory consisted of $1,200 In materlals and $6,400 In conversion costs. April costs were $57,600O for materials ang .00 arconesion costs Ending inventory stilln process was 6,400 units (100% complete for materials, 50% for conversion) The Cos DET equlvalert unt for conversan costs using the weighted average method would be: Maiole Chaice $400 $440 $4.70
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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