Units in process at the beginning of August Units started in August Units completed and transferred Units in process at end of August 900 2,000 2,100 800
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.
Computing EUP
Collins Company has the following data for the Assembly Department for August:
Conversion costs are added evenly throughout the process. The company uses the Weighted-average method. Compute the equivalent units of production for direct materials and conversion costs for each independent scenario:
- Units in process at the end of August are 20% complete; materials are added at the beginning of the process.
- Units in process at the end of August are 80% complete; materials are added at the beginning of the process.
- Units in process at the end of August are 20% complete, materials are added at the end of the process
- Units in process at the end of August are 80% complete, materials are added at the halfway point.
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