Process Costing System: As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes. Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads . Equivalent units : Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit. The effect of change in % for completion of conversion cost of beginning inventory on cost of units transferred and cost pesr equivalent unit of conversion under weighted average method

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Chapter 5, Problem 3AE

To determine

Concept Introduction:

Process Costing System: As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes.

Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads.

Equivalent units:Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

The effect of change in % for completion of conversion cost of beginning inventory on cost of units transferred and cost pesr equivalent unit of conversion under weighted average method

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