Show all work and label all numbers. Morgan Company reported the following data for the operations of its Mixing Department for the month of July. Costs Units Material Conversion Beginning work in process 2,000 $4,660 $48,910 (100% complete with respect to material) (40% complete with respect to conversion) Started into production 15,000 $32,300 $360,000 Ending work in process (100% with respect to materials) (30% with respect to conversion) 1,600 Required: a)Calculate the equivalent units of production for materials and conversion costs. b)Determine the cost per equivalent unit for materials and conversion costs. c)Determine the cost of units transferred out of the Mixing Department during the period.
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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Show all work and label all numbers. Morgan Company reported the following data for the operations of its Mixing Department for the month of July.
|
|
|
Costs |
|
|
|
Units |
Material |
Conversion |
|
Beginning work in process |
2,000 |
$4,660 |
$48,910 |
|
(100% complete with respect to material) (40% complete with respect to conversion) |
|
|
|
|
Started into production |
15,000 |
$32,300 |
$360,000 |
|
Ending work in process (100% with respect to materials) (30% with respect to conversion) |
1,600 |
|
|
Required:
a)Calculate the equivalent units of production for materials and conversion costs.
b)Determine the cost per equivalent unit for materials and conversion costs.
c)Determine the cost of units transferred out of the Mixing Department during the period.
d)Determine the cost of ending work in process inventory in the Mixing Department.
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