4. On April 1, 2021, KAKAYANIN Company had 6,000 units of Work in Process in Department B, the second and last stage of their production cycle. The costs attached to these 6,000 units were Php 12,000 of cost transferred in from Department A, Php 2,500 of material cost added in Department B and Php 2,000 conversion cost added in Department B. Materials are added in the beginning of the process in Department B. Conversion was 50% complete on April 1, 2021. During April, 14,000 units were transferred in from Department A at a cost of Php 27,000; and material cost of Php 3,500 and conversion cost of Php 3,000 were added in Department B. On April 30, Department B had 5,000 units of work in process 60% incomplete as to conversion costs. The costs attached to these 5,000 units were Php 10,500 of cost transferred in from Department A, Php 1,800 of material cost added in Department B and Php 800 of conversion costs added in Department B. a. Using weighted average method, what is the unit cost per transferred-in? b. Using weighted average method, what is the unit cost per materials? c. Using weighted average method, what is the unit cost per conversion costs?
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.
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