The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $9,0 direct materials. ACCOUNT Work in Process-Forging Department Date Item Nov. 1 Bal., 900 units, 60% completed 30 Direct materials, 12,900 units 30 Direct labor Debit 123,840 21,650 16,870 Credit ? ACCOUNT NO. Balance Debit b. Cost of units transferred to the next department during November. s x 10,566 134,406 156,056 172,926 ? ? 30 Factory overhead 30 Goods transferred, 2 units 30 Bal., 1,400 units, 70% completed Based on the above data, determine each of the following amounts. If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in November. $ X Credit c. Cost of ending work in process inventory on November 30. $ X d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places.
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.
Assignment is not graded. its for a study tool but cant get this figured out
The equivalent units are calculated on the basis of the percentage of the work completed during the period. The unit cost is calculated as the total costs divided by the number of the equivalent units produced.
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