The Camille company uses a process costing system together with the weighted average method of valuing equivalent units. the following data was taken from one of its Department for the month of June. EQUIVALENT UNITS Units to be accounted for: Work in progress 4,000 PHYSICAL MATERIAL CONVERION Started into production 48,000 Total Units to be accounted for 2,000 Units accounted for Transferred out 44,000 44,000 44,000 Work in progress November 30 8,000 8,000 8,000 Total units accounted for 2,000 2,000 48,000 Costs: Unit costs Cost in November Equivalent Units Cost per equivalent units Total $42,280 - $0.85 $13,000 $2,000 $0.25 $29,280 $48,800 $0.60 Cost to be accounted for: Wages in progress November 1 Started into production Total cost to be accounted for $2,840 $39,440 $42,280 Costs accounted for Transferred out (44,000x $0.85) Work in progress November 30 Materials (8,000 x $0.25) Conversion cost (4,800 x $0.60) Started into production Total cost accounted for $37,400 $2,000 2,880 $42,280 What was the actual number of units in production for November? 40,000 44,000 48,000 52,000
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 Camille company uses a
process costing system together with the weighted average method of valuing equivalent units. the following data was taken from one of its Department for the month of June.
|
|
EQUIVALENT UNITS |
||
|
Units to be accounted for:
Work in progress
|
4,000 |
PHYSICAL MATERIAL CONVERION |
|
|
Started into production |
48,000 |
|
|
|
Total Units to be accounted for |
2,000 |
|
|
|
Units accounted for Transferred out |
44,000 |
44,000 |
44,000 |
|
Work in progress November 30 |
8,000 |
8,000 |
8,000 |
|
Total units accounted for |
2,000 |
2,000 |
48,000 |
|
Costs:
Unit costs
Cost in November
Equivalent Units
Cost per equivalent units |
Total
$42,280
-
$0.85
|
$13,000
$2,000
$0.25 |
$29,280
$48,800
$0.60 |
|
|
|
|
|
|
Cost to be accounted for:
Wages in progress November 1 Started into production
Total cost to be accounted for |
$2,840
$39,440
$42,280 |
|
|
|
Costs accounted for
Transferred out (44,000x $0.85)
Work in progress November 30
Materials (8,000 x $0.25)
Conversion cost (4,800 x $0.60)
Started into production
Total cost accounted for
|
$37,400
$2,000
2,880
$42,280
|
|
|
What was the actual number of units in production for November?
- 40,000
- 44,000
- 48,000
- 52,000
Step by step
Solved in 3 steps
