Units accounted for: 58,000 12,500 70,500 58,000 12,500 70,500 Completed and transferred out 58,000 Ending work in process 30% complete as to conversion 3,750 Total units 61,750 Direct Materials Conversion Cost Total Cost COSTS Cost of beginning work in process 49,000 $ 14,000 $ 63,000 Current period costs Total costs $ 987,000 $ 741,000 $ 1.728,000 Equivalent units Cost per equivalent unit Direct Materials Conversion Cost Total Cost Costs to be accounted for Beginning work in process Current period costs Total costs Costs accounted for Completed and transferred out Ending work in process Total costs
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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