These data are based on the processing operations of HDG Enterprises. Assume that process conversion costs are uniform, but certain materials are added at different points in the process. Material 1 is added at the beginning of the process. The transferred-in costs are added at the 20% point in the process. Material 2 is added uniformly from the 50% to the 70% points in the process. Material 3 is added at the 75% point in the process, and Material 4 is added uniformly at the 90% to the 100% points in the process. The January BWIP was 10,000 units 60% complete, 60,000 units were added, and EWIP was 20,000 units 95% complete. Question What was the number of Material 2 EUP for the month? FIFO Weighted Average A. 50,000 60,000 B. 60,000 70,000 C. 65,000 70,000 D. 63,000 67,000
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.
Question
What was the number of Material 2 EUP for the month?
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FIFOWeighted Average
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A.50,00060,000
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B.60,00070,000
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C.65,00070,000
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D.63,00067,000
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