The following data was taken from EOQ Swab Company in July: Beginning inventory - 0 Units transferred in during month - 4,700 Units transferred to Finished Goods during the month - 4,300 Ending work in process (25% complete as to labor) - 400 Labor cost incurred for the month - P14,080 1. What is the equivalent production for labor during the month? 2. What is the labor cost per equivalent unit? 3. What is the labor cost in the ending work in process?
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 was taken from EOQ Swab Company in July:
Beginning inventory - 0
Units transferred in during month - 4,700
Units transferred to Finished Goods during the month - 4,300
Ending work in process (25% complete as to labor) - 400
Labor cost incurred for the month - P14,080
1. What is the equivalent production for labor during the month?
2. What is the labor cost per equivalent unit?
3. What is the labor cost in the ending work in process?
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