The following information concerns production in the Finishing Department for May. The Finishing Department uses the Weighted average method. ACCOUNT Work in Process—Finishing Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit May 1 Bal., 20,300 units, 75% completed 121,800 31 Direct materials, 99,500 units 364,170 485,970 31 Direct labor 225,800 711,770 31 Factory overhead 229,400 941,170 31 Goods transferred, 105,600 units 906,048 35,122 31 Bal., ? units, 30% completed 35,122 a. Determine the number of units in work in process inventory at the end of the month. fill in the blank 1 units b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for May. Assume that direct materials are placed in process during production.
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.
Equivalent
The following information concerns production in the Finishing Department for May. The Finishing Department uses the Weighted average method.
| ACCOUNT Work in Process—Finishing Department | ACCOUNT NO. | ||||||||
| Date | Item | Debit | Credit | Balance | |||||
| Debit | Credit | ||||||||
| May | 1 | Bal., 20,300 units, 75% completed | 121,800 | ||||||
| 31 | Direct materials, 99,500 units | 364,170 | 485,970 | ||||||
| 31 | Direct labor | 225,800 | 711,770 | ||||||
| 31 | Factory |
229,400 | 941,170 | ||||||
| 31 | Goods transferred, 105,600 units | 906,048 | 35,122 | ||||||
| 31 | Bal., ? units, 30% completed | 35,122 |
a. Determine the number of units in work in process inventory at the end of the month.
fill in the blank 1 units
b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for May. Assume that direct materials are placed in process during production.
| Whole units to be accounted for | fill in the blank 2 units |
| Whole units to be assigned costs | fill in the blank 3 units |
| Equivalent units of production | fill in the blank 4 units |
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