Transferred-In Cost Golding's finishing department had the following data for July: Line Item Description Transferred-In Materials Conversion Units transferred out 60,000 60,000 60,000 Units in EWIP 15,000 15,000 9,000 Equivalent units 75,000 75,000 69,000 Costs: Work in process, July 1:
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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Transferred-In Cost
Golding's finishing department had the following data for July:
Line Item Description Transferred-In Materials Conversion Units transferred out 60,000 60,000 60,000 Units in EWIP 15,000 15,000 9,000 Equivalent units 75,000 75,000 69,000 Costs: Work in process, July 1: Transferred-in from fabricating $2,100 Materials 1,500 Conversion costs 3,000 Total $6,600 Current costs: Transferred-in from fabricating $30,900 Materials 22,500 Conversion costs 45,300 Total $98,700 Required:
1. Calculate unit costs for the following categories: transferred-in, materials, and conversion. Round your answers to the nearest cent.
Line Item Description Cost Unit transferred-in cost $fill in the blank 1 Unit materials cost $fill in the blank 2 Unit conversion cost $fill in the blank 3 2. Calculate total unit cost. Round your answer to the nearest cent.
fill in the blank 1 of 1$per unit
Transferred-In Within a company's internal reporting and accounting systems, costs are employed in cost allocation and establishing the cost of things made or services offered. Assist management in making sound pricing, production efficiency, and resource allocation decisions.
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