The charges to Work in Process—Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the weighted average method, and all direct materials are placed in process during production. Work in Process—Baking Department Bal., 900 units, 40% completed 2,466 To Finished Goods, 8,100 units ? Direct materials, 8,400 units 34,500 Direct labor 16,200 Factory overhead 8,574 Bal., 1,200 units, 60% completed ? a. Determine the number of whole units to be accounted for and to be assigned costs. units b. Determine the number of equivalent units of production. units c. Determine the cost per equivalent unit. $ per equivalent unit d. Determine the cost of units transferred to Finished Goods. $ e. Determine the cost of units in ending Work in Process.
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 charges to Work in Process—Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the weighted average method, and all direct materials are placed in process during production.
| Work in Process—Baking Department | |||
|---|---|---|---|
| Bal., 900 units, 40% completed | 2,466 | To Finished Goods, 8,100 units | ? |
| Direct materials, 8,400 units | 34,500 | ||
| Direct labor | 16,200 | ||
| Factory |
8,574 | ||
| Bal., 1,200 units, 60% completed | ? |
a. Determine the number of whole units to be accounted for and to be assigned costs.
units
b. Determine the number of equivalent units of production.
units
c. Determine the cost per equivalent unit.
$ per equivalent unit
d. Determine the cost of units transferred to Finished Goods.
$
e. Determine the cost of units in ending Work in Process.
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