The cost per equivalent unit for conversion costs using the weighted average method would be:
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 following information applies to the questions displayed
below.]
We discuss how to calculate the number of equivalent units using
the weighted-average method. We also discuss how to calculate
the equivalent cost per unit and reconcile the total cost of Work in
Process Inventory.
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Knowledge Check 03
Sammy Co. uses
materials are added at the beginning of the process and conversion costs are
incurred uniformly throughout the process. Equivalent units have been calculated to
be 20,000 units for materials and 18,200 units for conversion costs. Beginning
inventory consisted of $6,200 in materials and $4,400 in conversion costs. May
costs were $47,000 for materials and $32,000 for conversion costs. Ending
inventory still in process was 4,000 units (100% complete for materials, 55% for
conversion). The cost per equivalent unit for conversion costs using the weighted
average method would be:
Knowledge Check 04
Sammy Co. uses process costing to account for the production of popcorn. Direct
materials are added at the beginning of the process and conversion costs are
incurred uniformly throughout the process. Equivalent units have been calculated to
be 20,000 units for materials and 18,200 units for conversion costs. Beginning
inventory consisted of $6,200 in materials and $4,400 in conversion costs. May
costs were $47,000 for materials and $32,000 for conversion costs. Ending
inventory still in process was 4,000 units (100% complete for materials, 55% for
conversion). The cost per equivalent unit for materials using the weighted average
method would be:
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