suming that Olympus uses the FIFO method, that materials are added at the beginning of the process and that conversion costs are incurred evenly throughout, solve for the three missing numbers. Round erage cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate.
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.
![Equivalent Units and Product Cost Report-FIFO Method
The following data (and annotations) for March 2016 are for the work in process account of the first of Olympus Company's four departments used in manufacturing its only product.
Work in Process-Department 1
Beginning balance (3,000 units, 40% complete)
Transferred to department 2 (23,000 units)
Direct material (24,000 units)
Direct labor
Manufacturing overhead
Ending balance [(b) units, 25% complete]
Assuming that Olympus uses the FIFO method, that materials are added at the beginning of the process and that conversion costs are incurred evenly throughout, solve for the three missing numbers. Round
average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate.
Complete/Transferred
Beginning inventory
Started & completed
Ending inventory
Total
$36,400
(a)
Olympus Company, Department 1
Flow of Units and Equivalent Units Calculation, March 2016
Equivalent Units
Direct
% in
Materials March
b.
192,000
159,600
68,400
(c)
0
0
0
0
% in
March
0%
0%
0%
0
0
0
0
0%
0%
0%
Conversion
Costs
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed4d9e12-99f1-466b-ba8a-e2fc2cdd22ec%2Fc9391951-a7a2-4ccb-b12b-71c9fa636b3a%2Fjhf98a_processed.jpeg&w=3840&q=75)
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