The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. Date Item Debit Credit Balance Debit Balance Credit August 1 Bal., 5,100 units, 2/5 completed 12,240 31 Direct materials, 91,800 units 183,600 195,840 31 Direct labor 53,290 249,130 31 Factory overhead 29,978 279,108 31 Goods finished, 93,000 units 269,904 9,204 31 Bal., ? units, 2/5 completed 9,204 Question Content Area a. Determine the number of units in work in process inventory at August 31. fill in the blank 1 of 1 units Feedback Area Feedback How many units were in process during the period? How many units were completed during the period? Question Content Area b. Determine the equivalent units of production for direct materials and conversion costs in August. If an amount is zero
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 information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production.
Date |
Item |
Debit |
Credit |
Balance Debit |
Balance Credit |
|---|---|---|---|---|---|
| August 1 | Bal., 5,100 units, 2/5 completed | 12,240 | |||
| 31 | Direct materials, 91,800 units | 183,600 | 195,840 | ||
| 31 | Direct labor | 53,290 | 249,130 | ||
| 31 | Factory |
29,978 | 279,108 | ||
| 31 | Goods finished, 93,000 units | 269,904 | 9,204 | ||
| 31 | Bal., ? units, 2/5 completed | 9,204 |
Question Content Area
a. Determine the number of units in work in process inventory at August 31.
fill in the blank 1 of 1 units
Feedback Area
How many units were in process during the period? How many units were completed during the period?
Question Content Area
b. Determine the equivalent units of production for direct materials and conversion costs in August. If an amount is zero, enter in "0".
| Line Item Description | Whole Units | Equivalent Units Direct Materials |
Equivalent Units Conversion |
|---|---|---|---|
| Inventory in process, August 1 | Inventory in process, August 1 | Inventory in process, August 1 | Inventory in process, August 1 |
| Started and completed in August | Started and completed in August | Started and completed in August | Started and completed in August |
| Transferred to finished goods in August | Transferred to finished goods in August | Transferred to finished goods in August | Transferred to finished goods in August |
| Inventory in process, August 31 | Inventory in process, August 31 | Inventory in process, August 31 | Inventory in process, August 31 |
| Total | Total | Total | Total |
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