Universe Corporation operates a fig-assembly process as a consequent step of the series of processes prior to storage for all its wood plants. Direct materials are added at the end of the process while conversion costs are distributed evenly during the process. The following data shows the scenario of the company. Data given: WIP, beg Degree of completion, beg WIP Transferred in during current period Completed and transrred out during current pe WIP, end Degree of completion, end WIP Physical units Transferred-in costs Direct materials Conversion cost 29,000 532,000 210,000 ? Answer the following questions: 1. What is the ending WIP inventory? 2. What is the equivalent production for direct materials? units 3. What is the equivalent production for conversion costs? 100% 100% units 0% units 0% 80% 40% eep your answers in whole numbers unless otherwise specified. Do not use commas (e.g., input 1000 stead of 1,000).
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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