The Aper Company computed the physical flow of units for Department A for the month of April as follows: Units completed: From work in process on April 1 10,000 From April production 30,000 Total 40,000 Materials are added at the beginning of the process. Units of work in process at April 30 were 8,000. The work in process at April 1 was 80% complete as to conversion costs, and the work in process at April 30 was 60% complete as to conversion costs. What are the equivalent units of production for the month of April using the FIFO method? Choices: Materials ConversionCosts a. 48,000 48,000 b. 40,000 47,600 c. 36,800 38,000 d. 38,000 36,800
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
