Star industries manufactures plastic toys. All direct materials are added at the beginning of the production process and conversion costs are added uniformly throughout the production process. Beginning work in process 3,300 units; 100% complete as to direct materials and 30% complete as to conversion costs. • Units started during the month 10,000. • The company completed 11,300 units, and transferred them to the Distribution Department. • Ending work in process, 2000 units; 100% complete as to direct materials and 55% complete as to conversion costs. The FIFO method of process costing is used. What were the equivalent units for conversion costs during October? O 10,400 0 11,900 0 11,410 09000
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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