The following info aiapUPAP SL UOI Started this month 80,000 units Beginning WIP (60% incomplete) 7,500 units Normal spoilage 1,100 units Abnormal spoilage 900 units Ending WIP (70% complete) 13,000 units units Transferred out 72,500 Beginning Work in Process Costs: Material P 6,875 Conversion 17,210 Current Costs: Material P120,000 Conversion 348,870 All materials are added at the start of production and the inspection point is at the 80% conversion. How many units were started and completed?
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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