The related data of Minorka Company's Assembly department: In Units Beginning Work in Process Inventory (BWIP) 10,000 (45% complete as to conversion) Started 120,000 Ending Work in Process Inventory (EWIP) 8,200 (80% complete as to conversion) Amount Beginning WIP Inventory Costs: Material P24,500 Conversion 68,905 Current Costs: Material 75,600 Conversion 130,053 P 299,058 All material is added at the start of the process and all finished products are transferred out (TO). Under the FIFO method, how much is the material cost per unit?
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 related data of Minorka Company's Assembly department:
In Units
Beginning Work in Process Inventory (BWIP) 10,000 (45% complete as to conversion)
Started 120,000
Ending Work in Process Inventory (EWIP) 8,200 (80% complete as to conversion)
Amount
Beginning WIP Inventory Costs:
Material P24,500
Conversion 68,905
Current Costs:
Material 75,600
Conversion 130,053
P 299,058
All material is added at the start of the process and all finished products are transferred out (TO).
Under the FIFO method, how much is the material cost per unit?
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