The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process): Units Material Costs Beginning work in process 100,000 $ 31,000 Started in May 240,000 103,800 Units completed 225,000 Ending work in process 115,000 Required: Compute the cost per equivalent unit for materials using the FIFO method. (Round "Cost per equivalent unit" answer to 2 decimal places.) Total costs to be accounted for Cost per equivalent unit
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.
Exercise 8-29 (Algo) Compute Costs per Equivalent Unit: FIFO Method (LO 8-5)
The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process):
| Units | Material Costs | |||
| Beginning work in process | 100,000 | $ | 31,000 | |
| Started in May | 240,000 | 103,800 | ||
| Units completed | 225,000 | |||
| Ending work in process | 115,000 | |||
Required:
Compute the cost per equivalent unit for materials using the FIFO method. (Round "Cost per equivalent unit" answer to 2 decimal places.)
|
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