The following data is available for one department of Floral Inc., which uses weighted-average method of process costing: A) B) Determine the equivalent units of production for December, if the department started 205,000 units into the production during the month of December. C) Work-in-process, December 1 45,000 Work-in-process, December 31 22,500 Equivalent Units of Production Equivalent Units of Production Units Equivalent Units of Production Equivalent Units of Production Materials Conversion 271,375 259,675 Materials Conversion 244,375 237,625 Materials Conversion 221,875 260,125 Percentage completed Materials Conversion 60% 49% 75% 45% Materials Conversion 16,875 10,125
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 data is available for one department of Floral Inc., which uses weighted-average method of
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