TK Co. manufactures a single product that goes through two processes, mixing and cooking. The data pertain to the mixing department for April 2016: Work-in-process inventory, April 1 Conversion: 80 percent completed Work-in-process inventory, April 30 Conversion: 40 percent completed 27,000 units 17,000 units Units started into production Units completed and transferred out 60,000 units ? Costs Work-in-process inventory, April 1 Materials X 64,800 Materials Y Conversion 89,100 119,880 Cost added during April Materials X Materials Y Conversion 152,700 138,400 302,520 Materials X is added at the beginning of work in the mixing department. Material Y also added in the mixing department, but not until units of product are 60 percent complete with regard to conversion. Conversion costs are incurred uniformly during the process. (if average method) 8. The equivalent units of material X is 70,000 b. 77,000 а. с. 87,000 d. 100,000 9. The cost per equivalent unit for material Y is а. Р5.25 b. Р4.50 с. Р3.25 d. P5.00 10. The cost of units transferred out is а. Рб50,000 b. P787,500 с. Р688,000 d. P750,500
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.
Step by step
Solved in 2 steps
