Zorzi Corporation uses a process costing system. The following information is available for one department in December. Percent Completed Units Materials Conversion Work in Process December 1 30,000 65% 30% Work in Process December 31 15,000 80% 40% The Department started 175,000 units into production during the month and transferred 190,000 completed units To the next department. Required: Compute the equivalent units of production for December assuming that the company uses the weighted-average method of accounting for units and costs. Compute the equivalent units of production for December assuming that the company uses the FIFO method of accounting for units and 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.
Zorzi Corporation uses a
Percent Completed
Units Materials Conversion
Work in Process December 1 30,000 65% 30%
Work in Process December 31 15,000 80% 40%
The Department started 175,000 units into production during the month and transferred 190,000 completed units
To the next department.
Required:
Compute the equivalent units of production for December assuming that the company uses the weighted-average method of accounting for units and costs.
Compute the equivalent units of production for December assuming that the company uses the FIFO method of accounting for units and costs.
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