thcheck Corp. manufactures an antacid product that passes through two departments. Data for June for the first depa follow. Work in process, June 1 Litres started in process Litres transferred out Work in process, June 30 Cost added during June Equivalent units of production Litres 80,000 760,000 790,000 50,000 Materials Materials Labour $ 60,600 $30,000 756,000 $907,200 $370,000 The beginning work in process inventory was 80% complete with respect to materials and 75% complete with respect to laba overhead. The ending work in process inventory was 60% complete with respect to materials and 20% complete with respec labour and overhead. Required: Assume that the company uses the weighted average method of accounting for units and costs. 1. Compute the equivalent units for June's activity for the first department. Overhead $ 48,000 $592,000 Labour & Overhead 740.000 4 2. Determine the costs per equivalent unit for June. (Round your answers to 2 decimal places.)
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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