The following information is available for Jones Company for April: Started this month 80,000 units Beginning WIP (40% complete) 7,500 units Normal spoilage (discrete) 1,100 units Abnormal spoilage 900 units Ending WIP (70% complete) 13,000 units Transferred out 72,500 units Beginning Work in Process Costs: Material $10,400 Conversion 13,800 Current Costs: Material $120,000 Conversion 350,000 All materials are added at the start of production and the inspection point is at the end of the process. The following information is available for Jones Company for April: Started this month 80,000 units Beginning WIP (40% complete) 7,500 units Normal spoilage (discrete) 1,100 units Abnormal spoilage 900 units Ending WIP (70% complete) 13,000 units Transferred out 72,500 units Beginning Work in Process Costs: Material $10,400 Conversion 13,800 Current Costs: Material $120,000 Conversion 350,000 All materials are added at the start of production and the inspection point is at the end of the process. What are equivalent units of production for material using FIFO? The following information is available for Jones Company for April: Started this month 80,000 units Beginning WIP (40% complete) 7,500 units Normal spoilage (discrete) 1,100 units Abnormal spoilage 900 units Ending WIP (70% complete) 13,000 units Transferred out 72,500 units Beginning Work in Process Costs: Material $10,400 Conversion 13,800 Current Costs: Material $120,000 Conversion 350,000 All materials are added at the start of production and the inspection point is at the end of the process. What is the total cost assigned to goods transferred out using weighted average? What is the cost assigned to normal spoilage and how is it classified using weighted average? What is the cost assigned to abnormal spoilage using FIFO?
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 is available for Jones Company for April:
|
Started this month |
80,000 |
units |
|
|
Beginning WIP |
|
|
|
|
|
(40% complete) |
7,500 |
units |
|
Normal spoilage (discrete) |
1,100 |
units |
|
|
Abnormal spoilage |
900 |
units |
|
|
Ending WIP |
|
|
|
|
|
(70% complete) |
13,000 |
units |
|
Transferred out |
72,500 |
units
|
|
|
Beginning Work in |
|
|
|
|
|
Material |
$10,400 |
|
|
|
Conversion |
13,800 |
|
|
Current Costs: |
|
|
|
|
|
Material |
$120,000 |
|
|
|
Conversion |
350,000 |
|
All materials are added at the start of production and the inspection point is at the end of the process.
The following information is available for Jones Company for April:
|
Started this month |
80,000 |
units |
|
|
Beginning WIP |
|
|
|
|
|
(40% complete) |
7,500 |
units |
|
Normal spoilage (discrete) |
1,100 |
units |
|
|
Abnormal spoilage |
900 |
units |
|
|
Ending WIP |
|
|
|
|
|
(70% complete) |
13,000 |
units |
|
Transferred out |
72,500 |
units
|
|
|
Beginning Work in Process Costs: |
|
|
|
|
|
Material |
$10,400 |
|
|
|
Conversion |
13,800 |
|
|
Current Costs: |
|
|
|
|
|
Material |
$120,000 |
|
|
|
Conversion |
350,000 |
|
All materials are added at the start of production and the inspection point is at the end of the process.
What are equivalent units of production for material using FIFO?
The following information is available for Jones Company for April:
|
Started this month |
80,000 |
units |
|
|
Beginning WIP |
|
|
|
|
|
(40% complete) |
7,500 |
units |
|
Normal spoilage (discrete) |
1,100 |
units |
|
|
Abnormal spoilage |
900 |
units |
|
|
Ending WIP |
|
|
|
|
|
(70% complete) |
13,000 |
units |
|
Transferred out |
72,500 |
units
|
|
|
Beginning Work in Process Costs: |
|
|
|
|
|
Material |
$10,400 |
|
|
|
Conversion |
13,800 |
|
|
Current Costs: |
|
|
|
|
|
Material |
$120,000 |
|
|
|
Conversion |
350,000 |
|
All materials are added at the start of production and the inspection point is at the end of the process.
What is the total cost assigned to goods transferred out using weighted average?
What is the cost assigned to normal spoilage and how is it classified using weighted average?
What is the cost assigned to abnormal spoilage using FIFO?
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