The Maing Department of Healthy Foods had 65,000 units to account for in October. Of the 65,000 units, 40,000 units were completed and transferred to the next department, and 25,000 units were 20% complete for conversion work. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the mixing process and the company uses the weighted average method Compute the total equivalent units of production for direct materials and conversion costs for October Healthy Foods Production Cost Report-Mixing Department (Partial) Month Ended October 31 UNITS Units accounted for Completed and transferred out Ending work-in-process Total units accounted for Physical Units 40.000 25.000 65.000 Equivalent Units Direct Conversion Materials Costs
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.
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