Weighted-average method. McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at McKnight has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly department's process. McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2017: Physical Unit (Frames) Direct Conversion Materials Costs $ 1,530 $ 156 Work in process, April 1° Started during April 2017 Completed during April 2017 Work in process, April 30b Total costs added during April 2017 60 510 450 120 $17,850 $11,544 Degree of completion: direct materials, 100%; conversion costs, 40%. "Degree of completion: direct materials, 100%; conversion costs, 15%.
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.
Complete Problem using the FIFO method of
![Weighted-average method. McKnight Handcraft is a manufacturer of picture frames for large
retailers. Every picture frame passes through two departments: the assembly department and the finishing
department. This problem focuses on the assembly department. The process-costing system at McKnight
has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs).
Direct materials are added when the assembly department process is 10% complete. Conversion costs are
added evenly during the assembly department's process.
McKnight uses the weighted-average method of process costing. Consider the following data for the
assembly department in April 2017:
Physical Unit
(Frames)
Direct
Conversion
Materials
Costs
$ 1,530
$ 156
Work in process, April 1°
Started during April 2017
Completed during April 2017
Work in process, April 30b
Total costs added during April 2017
60
510
450
120
$17,850
$11,544
Degree of completion: direct materials, 100%; conversion costs, 40%.
"Degree of completion: direct materials, 100%; conversion costs, 15%.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa8816bf8-f305-4fd6-ab21-8dc27bcb3042%2F30d20943-8303-4d5f-b13e-b8bac2ebfd57%2F1g6lch4.jpeg&w=3840&q=75)
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