weighted- age The beginning work in process inventory in a particular departmen units, 100% complete with respect to materials cost and 20% com conversion costs. The total cost in the beginning work in process in- A total of 42,000 units were transferred out of the department du costs per equivalent unit were computed to be $2.40 for mate conversion costs. The total cost of the units completed and tra department 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.
Equivalent units are a technique for expressing the status of work-in-process inventory items in terms of fully finished units. This notion is very important in process costing to correctly assign production expenses and compute per-unit costs for financial reporting and decision-making.
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