(USE FIRST IN FIRST OUT METHOD) Direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: WIP beginning (50% for conversion) 28,400 units Units started 124,000 units Units completed and transferred out 107,000 units WIP ending (50% for conversion) 45,400 units Beginning WIP direct materials $53,200 Beginning WIP conversion costs $19,600 Costs of materials added $442,100 Costs of conversion added $304,650 Required: d. What is the cost per equivalent unit for conversion costs? e. What is the total cost of units completed and transferred out? f. What is the total cost of units remaining in ending WIP?
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.
(USE FIRST IN FIRST OUT METHOD)
Direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other
details include:
WIP beginning (50% for conversion) 28,400 units
Units started 124,000 units
Units completed and transferred out 107,000 units
WIP ending (50% for conversion) 45,400 units
Beginning WIP direct materials $53,200
Beginning WIP conversion costs $19,600
Costs of materials added $442,100
Costs of conversion added $304,650
Required:
d. What is the cost per equivalent unit for conversion costs?
e. What is the total cost of units completed and transferred out?
f. What is the total cost of units remaining in ending WIP?
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