Top That manufactures baseball-style hats. Material is introduced at the beginning of the process in Cutting Department. Conversion costs are incurred (and allocated) uniformly throughout the process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Data for the Cutting Department for the month of February 2020 follow: Work in process, January 31 - 50,000 units 100% complete for direct materials, 40% completed for conversion costs actual costs of direct materials, P70,500; actual costs of conversion, P34,050 Units started during February, 225,000 Units completed during February, Work in process, February 28 - 75,000 units 100% complete for direct materials, 20% completed for conversion costs Direct materials added during February [actual costs] P342,000 Conversion costs added đuring February [actual costs] P352,950 200,000 Assuming Top That uses the weighted-average method to account for inventories, the equivalent units of work for the month of February ake
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.
Assuming Top That uses the weighted average method to account for inventories, the equivalent units of work for the month of February are:
DIRECT MATERIALS P225,000 ; CONVERSION COST P225,000
DIRECT MATERIALS P200,000; CONVERSION COST P200,000
DIRECT MATERIALS P275,000; CONVERSION COST P215,000
DIRECT MATERIALS P225,000; CONVERSION COST P200,000
None of the above
![Top That manufactures baseball-style hats. Material is introduced at the beginning of the process in Cutting
Department. Conversion costs are incurred (and allocated) uniformly throughout the process. As the cutting of
material is completed, the pieces are immediately transferred to the Sewing Department. Data for the Cutting
Department for the month of February 2020 follow:
Work in process, January 31 - 50,000 units
100% complete for direct materials, 40% completed for conversion costs
actual costs of direct materials, P70,500; actual costs of conversion, P34,050
Units started during February, 225,000
Units completed during February,
Work in process, February 28 - 75,000 units
100% complete for direct materials, 20% completed for conversion costs
Direct materials added during February [actual costs]
Conversion costs added during February [actual costs] P352,950
200,000
P342,000
Assuming Top That uses the weighted-average method to account for inventories, the equivalent units of work
for the month of February ake](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F41ed8d8d-349b-4c06-bde9-1e06ab6db030%2Ff281bcab-3fe7-4738-9be1-a9a0dc671f0e%2F04gpge_processed.png&w=3840&q=75)
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