Thayn Company produces an arthritis medication that passes through two departments: Mixing and Tableting. Thayn uses the weighted average method. Data for February for Mixing is as follows: BWIP was zero; EWIP had 36,000 units, 50% complete; and 470,000 units were started. Tableting's data for February is as follows: BWIP was 34,000 units, 20% complete; and 12,000 units were in EWIP, 40% complete. Required: 1. For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production. a. Units transferred to Tableting ___________ units b. Equivalent units of production ___________ units 2. For Tableting, calculate the number of units transferred out to Finished Goods. ____________ Units 3. Conceptual Connection: Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight ounces (excluding the bottle). Now, repeat Requirement 2 using this approach. Units transferred out ___________ units
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.
Thayn Company produces an arthritis medication that passes through two departments: Mixing and Tableting. Thayn uses the weighted average method. Data for February for Mixing is as follows: BWIP was zero; EWIP had 36,000 units, 50% complete; and 470,000 units were started. Tableting's data for February is as follows: BWIP was 34,000 units, 20% complete; and 12,000 units were in EWIP, 40% complete.
Required:
1. For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production.
| a. Units transferred to Tableting ___________ | units |
| b. Equivalent units of production ___________ | units |
2. For Tableting, calculate the number of units transferred out to Finished Goods.
____________ Units
3. Conceptual Connection: Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight ounces (excluding the bottle).
Now, repeat Requirement 2 using this approach.
Units transferred out ___________ units
Step by step
Solved in 2 steps with 4 images
