Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 13,100 units and 22,800 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 35,600 units into production and completed 25,900 units. Manufacturing costs follow. Beginning work in process: Materials, $67,800; conversion cost, $158,000 Current costs: Materials, $211,000; conversion cost, $524,000 Universal's equivalent-unit cost for conversion cost is: Multiple Choice $12.30. $16.59. $19.59. $23.79. None of the answers is correct.
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.
Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 13,100 units and 22,800 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 35,600 units into production and completed 25,900 units.
Beginning work in process: Materials, $67,800; conversion cost, $158,000
Current costs: Materials, $211,000; conversion cost, $524,000
Universal's equivalent-unit cost for conversion cost is:
-
$12.30.
-
$16.59.
-
$19.59.
-
$23.79.
-
None of the answers is correct.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
