Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,300 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $668,626 in total. The ending work in process inventory in January consisted of 3,900 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:Materials Labor OverheadCost per equivalent unit $ 12.70 $ 3.50 $ 6.80How do I find the equivalent units for the materials, labor and overhead?
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.
Superior Micro Products uses the weighted-average method in its
Materials Labor Overhead
Cost per equivalent unit $ 12.70 $ 3.50 $ 6.80
How do I find the equivalent units for the materials, labor and overhead?
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