Chapter 18, Problem 18.8APE

To determine

Process costs

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.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

To Calculate: The equivalent cost per unit of energy for the month of June.

To determine

To Calculate: The equivalent cost per unit of energy for the month of July.

To determine

To Evaluate: The changes in cost of energy between June and July.