The inventory at June 1 and costs charged to Work in Process—Department 60 during June are as follows: Line Item Description Amount 3,800 units, 60% completed $ 60,400 Direct materials, 32,000 units 378,000 Direct labor 274,000 Factory overhead 168,000 Total cost to be accounted for $880,400 During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units that were 85% completed. Inventories are costed by the first-in, first-out method, and all materials are added at the beginning of the process. Determine the following: a. Equivalent units of production for conversion cost. (Round to the nearest whole unit.) fill in the blank 1 of 1 Units b. Conversion cost per equivalent unit. (Round to four decimal places.) fill in the blank 1 of 1$ per equivalent unit c. Total and unit cost of finished goods started in prior period and completed in the current period. Total cost (Round to the nearest dollar.) fill in the blank 1 of 2$ Unit cost (Round to four decimal places.) fill in the blank 2 of 2$ d. Total and unit cost of finished goods started and completed in the current period. Total cost (Round to the nearest dollar.) fill in the blank 1 of 2$ Unit cost (Round to four decimal places.) fill in the blank 2 of 2$ e. Total cost of work in process inventory, June 30. (Do not round intermediate calculation; Round to the nearest dollar.) fill in the blank 1 of 1
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 inventory at June 1 and costs charged to Work in Process—Department 60 during June are as follows:
| Line Item Description | Amount |
|---|---|
| 3,800 units, 60% completed | $ 60,400 |
| Direct materials, 32,000 units | 378,000 |
| Direct labor | 274,000 |
| Factory |
168,000 |
| Total cost to be accounted for | $880,400 |
During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units that were 85% completed. Inventories are costed by the first-in, first-out method, and all materials are added at the beginning of the process.
Determine the following:
a. Equivalent units of production for conversion cost. (Round to the nearest whole unit.)
fill in the blank 1 of 1 Units
b. Conversion cost per equivalent unit. (Round to four decimal places.)
fill in the blank 1 of 1$ per equivalent unit
c. Total and unit cost of finished goods started in prior period and completed in the current period.
Total cost (Round to the nearest dollar.) fill in the blank 1 of 2$
Unit cost (Round to four decimal places.) fill in the blank 2 of 2$
d. Total and unit cost of finished goods started and completed in the current period.
Total cost (Round to the nearest dollar.) fill in the blank 1 of 2$
Unit cost (Round to four decimal places.) fill in the blank 2 of 2$
e. Total cost of work in process inventory, June 30. (Do not round intermediate calculation; Round to the nearest dollar.)
fill in the blank 1 of 1
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