The ABC Company uses the weighted average method in it is process costing system. The data below pertains to operations in the first processing department for the month of February: Beginning Inventory consisted of 400 units that were 75% complete from a material standpoint and 50% complete from a conversion standpoint. The value of the beginning inventory consisted of $1,800 of material and $3,300 of conversion cost. 15,000 units were started in February Ending Inventory consisted of 1,000 units that were 80% complete from a material standpoint and 40% complete from a conversion standpoint. The costs added in February consisted of $97,000 of material and $215,000 of conversion costs. Based upon the data provided determine the following: The EU of Material ____________________ The EU of Conversion __________________ The cost per of EU of Material ___________ The cost per EU of Conversion ___________ The value of ending inventory ___________
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.
The ABC Company uses the weighted average method in it is
- Beginning Inventory consisted of 400 units that were 75% complete from a material standpoint and 50% complete from a conversion standpoint.
- The value of the beginning inventory consisted of $1,800 of material and $3,300 of conversion cost.
- 15,000 units were started in February
- Ending Inventory consisted of 1,000 units that were 80% complete from a material standpoint and 40% complete from a conversion standpoint.
- The costs added in February consisted of $97,000 of material and $215,000 of conversion costs.
Based upon the data provided determine the following:
- The EU of Material ____________________
- The EU of Conversion __________________
- The cost per of EU of Material ___________
- The cost per EU of Conversion ___________
- The value of ending inventory ___________
What amount was the amount of Cost of Goods Manufactured and transferred to the next processing department?
Ans: _________________
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