units Units in process, beg. 4,000 gallons Materials, chemicals (?complete) Materials, cans (0% complete) Labor and Overhead (25% converted) Started in process 21,000 gallons Transferred to shipping 20,000 gallons In process, end Materials, chemicals (100
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.
For the month just ended, the following data were generated by Alonzo Corporation.
Physical units
Units in process, beg. 4,000 gallons
Materials, chemicals (?complete)
Materials, cans (0% complete)
Labor and
Started in process 21,000 gallons
Transferred to shipping 20,000 gallons
In process, end
Materials, chemicals (100% complete)
Materials, can (? complete)
Labor and overhead (80% complete)
Costs for the month
Work in process, beg.
Materials, chemical P 456,000
Labor (P100 per hour) 62,500
Overhead 18,750
The month's cost added
Materials, chemicals 2,284,000
Materials, cans 70,000
Labor 350,000
Overhead 105,000
The company manufactures high paints. Production begins with the blending of the various chemicals, which are added at the
beginning of the process and ends with the canning of the paint. Canning occurs when the mixture reaches the 90% stage of completion. The gallon cans are then transferred to the Shipping Department for crating and shipment. Direct labor and overhead are added continuously throughout the process. Overhead is allocated on the basis of direct labor hours at the rate of P 30 per hour.
a. Using the weighted average method, the cost per equivalent unit for direct materials, cans amounted to
b. Using the weighted average method, the cost of overhead in the work in process, end amounted
c. Using the weighted average method, the cost per equivalent unit for direct materials, chemicals amounted to
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