The cost reports of Firm H show the details of beginning work-in-process, units completed and transferred, and ending work-in-process as below: Particulars Beginning work-in-process (15% completed for materials and 5,000 conversion) Number of units Units completed and transferred 34,000 Ending work-in-process (100% complete for materials and 50% 3,600 complete for conversion) Determine the difference in equivalent units for material as per the weighted average cost method and first-in-first-out method. A) The difference in equivalent units is 2,550 units. B) The difference in equivalent units is 5,000 units. C) The difference in equivalent units is 375 units. D) The difference in equivalent units is 750.
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.
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