The Refining Department of Kristian, Inc. had 83,000 pounds of materials to account for in the current month. Of the 83,000 pounds, 69,000 pounds were completed and transferred to finished goods, and the remaining 14,000 pounds were 80% complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The weighted−average method is used. Calculate the total equivalent units of production for direct materials. A. 69,000 pounds B. 80,200 pounds C. 83,000 pounds D. 11,200 pounds
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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