Using the FIFO method, the equivalent units of production for materials was?
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.
The following data were taken from the records of Winner Company for the month of October:
Work in process, October 1 10,000 units
Started during October 40,000 units
Completed and transferred to next department 33,000 units
Abnormal spoilage incurred 2,000 units
Work in process, October 31 15,000 units
Materials are added after quality control inspection at the end of the process. As to conversion cost, the beginning work in process was 70% complete while the ending work in process is 40% complete.
Using the FIFO method, the equivalent units of production for materials was?
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