Concept explainers
It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.
Direct materials cost
Manufacturing products arise with raw materials that are altered into finished products. The cost of any material that is an important part of the finished product is categorized as a direct materials cost.
Conversion cost
Cost of changing the materials into a finished product. It includes direct labor
To Identify: The cost of completed and transferred out production of Company KS.
To Identify: The ending working process inventory for direct material cost and conversion cost of Company KS.
To Calculate: The total costs assigned by the rolling department of Company KS.
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Working Papers, Volume 1, Chapters 1-15 for Warren/Reeve/Duchac's Corporate Financial Accounting, 13th + Financial & Managerial Accounting, 13th
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