Weighted Average Method, Equivalent Units Goforth Company produces a product where all manufacturing inputs are applied uniformly. Goforth produced the following physical flow schedule for April: Units to account for: Units in BWIP (40% complete) 180,000 Units started 420,000 Total units to account for 600,000 Units accounted for: Units completed: From BWIP 180,000 Started and completed 324,000 504,000 Units, EWIP (75% complete) 96,000 Total units accounted for 600,000 Required: Prepare a schedule of equivalent units using the weighted average method. Goforth Company Schedule of equivalent units (Weighted Average Method) Units completed Units in ending work in process x fraction complete: Equivalent units of output
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.
Weighted Average Method, Equivalent Units
Goforth Company produces a product where all manufacturing inputs are applied uniformly. Goforth produced the following physical flow schedule for April:
| Units to account for: | |
| Units in BWIP (40% complete) | 180,000 |
| Units started | 420,000 |
| Total units to account for | 600,000 |
| Units accounted for: | |
| Units completed: | |
| From BWIP | 180,000 |
| Started and completed | 324,000 |
| 504,000 | |
| Units, EWIP (75% complete) | 96,000 |
| Total units accounted for | 600,000 |
Required:
Prepare a schedule of equivalent units using the weighted average method.
| Goforth Company | |
| Schedule of equivalent units | |
| (Weighted Average Method) | |
| Units completed | |
| Units in ending work in process x fraction complete: | |
| Equivalent units of output |
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