X company follows weighted-average process costing. The company provided the following information related to department one for the month of January Percentage completed Units Materials Conversion 100% 60% Particulars Beginning work-in-process 10,000 Ending work-in-process 15,000 Cost information: 20% 40% Materials Conversion $50,000 $35,000 $75,500 Beginning work-in-process Costs added during January $95,800 Determine the cost per EUP for materials and conversion, assuming 25,500 units were started during the period. (Round final answers to nearest cent) Cost per EUP for materials and conversion is $5.50 and $3.75 respectively. Cost per EUP for materials and conversion is $4.94 and $3.20 respectively. Cost per EUP for materials and conversion is $3.25 and $2.85 respectively. Cost per EUP for materials and conversion is $4.94 and $4.17 respectively.
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.
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