The company uses the weighted-average method in its process costing system. Data for March for the Drying Department follow: Percent Completed Pulping Conversion Units 5.000 8,000 10096 100% 20% 25% MIRIPIR HIIHII SHI Work in process inventory, March 1 SH Work in process inventory, March 31 Pulping cost in work in process Inventory, March 1 Conversion cost in work in process inventory, March Units transferred to the next production department Pulping cost added during March Conversion cost added during March $4,800 $500 157.000 $ 102,450 $31.300 BIBIR LIBRE MILIH 10 HIRDED HERE No materials are added in the Drying Depurtment. Pulping cost represents the costs of the wet fibers transferred in from the Pulping Department. Wer fiber is processed in the Drying Department in batches: cach unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper that is passed on to the Finishing Department Required: 1. Compute the Drying Department's equivalent units of production for pulping and conversion in March. 2. Compute the Drying Department's cost per equivalent unit for pulping and conversion in March. 3. Compute the Drying Department's cost of ending work in process inventory for pulping. conversion, and in total por March.
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 company uses the weighted-average method in its
1. Compute the Drying Department's equivalent units of production for pulping and conversion in March.
2. Compute the Drying Department's cost per equivalent unit for pulping and conversion in March.
3. Compute the Drying Department's cost of ending work in process inventory for pulping. conversion, and in total por March.
4. Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total in March
5. Prepare a cost reconciliation report for the Drying Department for March
6.
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