SIMPly Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Units Materials Conversion Beginning work in process inventory: Units in beginning work in process inventory 900 Costs in work in process inventory $11,200 $9,800 Percent complete 60% 40% Units started into production during the month 7,100 Units transferred to the next department during the month 6,000 Costs added during the month $115,800 $145,800 Ending work in process inventory: Units in ending work in process inventory 2,000 Percent complete 55% 35% The cost per equivalent unit for conversion costs for the month in the first processing department is closest to: Question 5 options: 1) $21.76 2) $19.45 3) $23.22 4) $24.38
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.
SIMPly Corporation uses the weighted-average method in its
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Units |
Materials |
Conversion |
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Beginning work in process inventory: |
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Units in beginning work in process inventory |
900 |
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Costs in work in process inventory |
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$11,200 |
$9,800 |
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Percent complete |
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60% |
40% |
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Units started into production during the month |
7,100 |
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Units transferred to the next department during the month |
6,000 |
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Costs added during the month |
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$115,800 |
$145,800 |
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Ending work in process inventory: |
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Units in ending work in process inventory |
2,000 |
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Percent complete |
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55% |
35% |
The cost per equivalent unit for conversion costs for the month in the first processing department is closest to:
Question 5 options:
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