Shawinigan Inc. uses a weighted-average process-costing system. All materials are introduced at the beginning of production; conversion costs are incurred evenly throughout the manufacturing process. The following information pertains to April: Beginning work in process (80% complete) Goods completed during April Ending work in process (30% complete) 9,000 units 53,000 units 12,000 units The company's accountant has already computed the cost per equivalent unit, as follows: materials, $5; conversion, $14. REQUIRED: Calculate the cost of goods completed during April and the cost of the ending work-in-process inventory.
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
Solved in 3 steps
