Watkins Company had the following production for the month: Units Work-in-process, beginning 6,000 Started during the month 24,000 Completed and transferred to finished goods 18,000 Spoilage incurred 3,000 Work-in-process, ending 9,000 Materials are added at the beginning of the process. As to conversion cost, work-in-process was 20% complete at the beginning and 70% complete at the end of the month. Spoilage is detected at the end of the process. 1. Using the weighted-average method, the equivalent units for the month, with respect to conversion cost, were: 2. Assume that the spoilage for the month included abnormal spoilage of 1,000 units, and that the total costs incurred to date for materials and conversion costs are $30,000 and $54,600, respectively. What is the amount debited to the finished goods accounts for the month's production? Please don't provide solution in an image based answers thank you
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.
Watkins Company had the following production for the month:
Units
Work-in-process, beginning 6,000
Started during the month 24,000
Completed and transferred to finished goods 18,000
Spoilage incurred 3,000
Work-in-process, ending 9,000
Materials are added at the beginning of the process. As to conversion cost, work-in-process was 20% complete at the beginning and 70% complete at the end of the month. Spoilage is detected at the end of the process.
1. Using the weighted-average method, the equivalent units for the month, with respect to conversion cost, were:
2. Assume that the spoilage for the month included abnormal spoilage of 1,000 units, and that the total costs incurred to date for materials and conversion costs are $30,000 and $54,600, respectively. What is the amount debited to the finished goods accounts for the month's production?
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