The Case: The following data is related to assembly division in XYZ company in June month: Work in process, beginning Started in June Completed during June Work in process, ending** Physical Direct Units Materials 80 500,000 300 300 80 Conversion Costs 100,000 3,000,000 1,500,000 Total cost added during June ** Degree of completion: Direct mat. 60%, conversion costs, 30%. Required: Use the weighted average method to a- Prepare the equivalent units table (Include the physical units). b- Summarize the total cost to account for, calculate cost per equivalent unit, and assign total cost to unit completed and transferred and to units in ending work in process. e-Comment on the results
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.
Please do not give solution in image format thanku
Step by step
Solved in 3 steps
