
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.
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 direct material for the month of September.
To Calculate: The equivalent cost per unit of direct material for the month of October.
To Evaluate: The changes in cost of materials between September and October.

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Chapter 3 Solutions
Managerial Accounting
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