The Mixing department of Modern bakery has the following production and cost data for March 2019: Productions Costs Transferred out 3,500 units beginning work in process $ -0- Started 700 units that are 70% complete Materials 19,950 as to conversion costs and 100% complete Labour 18,952.50 as to materials at March 31. Manufacturing overhead 24,937.50 Materials were added at the beginning of the process. Conversion costs are incurred uniformly during the process. Instructions Prepare schedule for physical units of production (Quantity schedule) Compute the equivalent units of production for (1) materials and (2) conversion costs for each month. Calculate per unit cost Compute the unit costs and prepare a cost reconciliation schedule
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 Mixing department of Modern bakery has the following production and cost data for March 2019:
Productions Costs
- Transferred out 3,500 units beginning work in process $ -0-
- Started 700 units that are 70% complete Materials 19,950
as to conversion costs and 100% complete Labour 18,952.50
as to materials at March 31. Manufacturing
Materials were added at the beginning of the process. Conversion costs are incurred uniformly during the process.
Instructions
- Prepare schedule for physical units of production (Quantity schedule)
- Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.
- Calculate per unit cost
- Compute the unit costs and prepare a cost reconciliation schedule
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