The inspection department at Concord Industries receives manufactured parts from its own production department and then meticulously checks every part before packaging it for sale. This month, the production department focused on automobile side mirrors. The inspection department began April with just 160 side mirrors in process. These beginning units were 70% of the way through the inspection process. During April, 3,960 more side mirrors were transferred-in from the production department. By month’s end, 3,670 units had been fully inspected and packaged (packaging occurs when the units reach the 95% completion point in the inspection department). April’s ending WIP Inventory units in the inspection department were 40% of the way through the inspection process. Determine Concord’s equivalent units for transferred-in costs, DM, and conversion costs in April, assuming the company uses the FIFO method of process costing. Transferred-in DM Conversion Cost Total equivalent units of work done enter a number of unitsCorrect answer enter a number of unitsCorrect answer enter a number of units
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 inspection department at Concord Industries receives manufactured parts from its own production department and then meticulously checks every part before packaging it for sale. This month, the production department focused on automobile side mirrors. The inspection department began April with just 160 side mirrors in process. These beginning units were 70% of the way through the inspection process. During April, 3,960 more side mirrors were transferred-in from the production department. By month’s end, 3,670 units had been fully inspected and packaged (packaging occurs when the units reach the 95% completion point in the inspection department). April’s ending WIP Inventory units in the inspection department were 40% of the way through the inspection process.
Determine Concord’s equivalent units for transferred-in costs, DM, and conversion costs in April, assuming the company uses the FIFO method of
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Transferred-in
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DM
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Conversion Cost
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Total equivalent units of work done
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enter a number of unitsCorrect answer | enter a number of unitsCorrect answer | enter a number of units |
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