Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department). WIP inventory-Finishing Beginning inventory (10,300 units, 25% complete with respect to Finishing costs) Transferred-in costs (from Mixing) $ 115,510 Finishing conversion costs 9,295 Current Work (98,400 units started) Mixing costs 897,260 Finishing costs 436,370 The ending inventory has 14,300 units, which are 50 percent complete with respect to finishing Department costs and 100 percent complete for Mixing Department costs.
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.
Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department).
WIP inventory-Finishing
Beginning inventory (10,300 units, 25% complete with respect to Finishing costs)
Transferred-in costs (from Mixing) $ 115,510
Finishing conversion costs 9,295
Current Work (98,400 units started)
Mixing costs 897,260
Finishing costs 436,370
The ending inventory has 14,300 units, which are 50 percent complete with respect to finishing Department costs and 100 percent complete for Mixing Department costs.
Required:
Complete the production cost report using the FIFO method. (Round “Cost per equivalent unit” to 2 decimal places.)
Physical Units Equivalent Units
Mixing Finishing
Department Department
Flow of units: _____________ ___________ ___________
Units to be accounted for: ______________ ___________ ___________
Beginning WIP inventory ______________ ___________ ___________
Units started this period ______________ ___________ ___________
Total units to account for ______________ ___________ ___________
Units accounted for: ______________ ___________ ____________
Completed and transferred out ______________ ___________ _____________
Units in ending inventory _______________ ___________ _____________
Mixing _______________ ___________ ____________
Finishing _______________ ___________ _____________
Total units accounted for _______________ ___________ _____________
Total Mixing Dept Finishing Dept
Flow of costs: ______________ ____________ ____________
Costs to be accounted for: ______________ ____________ ____________
Costs in beginning WIP inventory _______________ ____________ ____________
Current period costs _______________ _____________ ____________
Total costs to be accounted for $ 0 $ 0 $ 0
Cost per equivalent unit _______________ _____________ ____________
Mixing _______________ _____________ ____________
Finishing _______________ _____________ ____________
Costs accounted for: _______________ ______________ _____________
Costs assigned to units transferred out _______________ ______________ _____________
Costs of ending WIP inventory _______________ ______________ _____________
Total costs accounted for $ 0 $ 0 $ 0
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