The following cost information is available for July for the Crest Plant at Calvert Company: Beginning work-in-process inventory Materials cost $ 56,500 Conversion cost 35,500 Total $ 92,000 Current costs Materials cost $ 125,000 Conversion cost 375,000 Total $ 500,000 Materials are added at the beginning of the process. The following quantities have been recorded: Beginning inventory, 40,500 partially complete gallons, 30 percent complete with respect to conversion costs. Units started in July, 80,500 gallons. Units transferred out in July, 90,500 gallons. Ending inventory, 30,500 gallons, 45 percent complete with respect to conversion costs. Required: Compute the cost per equivalent unit for direct materials and conversion costs for July using the weighted-average method. Note: Round your answers to 2 decimal places. Cost per equivalent unit Direct materials: Conversion cost:
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 cost information is available for July for the Crest Plant at Calvert Company:
| Beginning work-in-process inventory | |
|---|---|
| Materials cost | $ 56,500 |
| Conversion cost | 35,500 |
| Total | $ 92,000 |
| Current costs | |
| Materials cost | $ 125,000 |
| Conversion cost | 375,000 |
| Total | $ 500,000 |
Materials are added at the beginning of the process. The following quantities have been recorded:
- Beginning inventory, 40,500 partially complete gallons, 30 percent complete with respect to conversion costs.
- Units started in July, 80,500 gallons.
- Units transferred out in July, 90,500 gallons.
- Ending inventory, 30,500 gallons, 45 percent complete with respect to conversion costs.
Required:
Compute the cost per equivalent unit for direct materials and conversion costs for July using the weighted-average method.
Note: Round your answers to 2 decimal places.
Cost per equivalent unit
Direct materials:
Conversion cost:
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