Assume the following production data taken from the records of CONEY Manufacturing Co: Transferred out 130,000 units Started in process 150,000 units Ending work in process (2/8 complete) 45,000 units 40% of the materials are added when the processing is halfway complete with the balance added when 80% complete. Beginning work in process, if any, needs 3/5 to be completed. There are no spoiled units. 1. What is the Equivalent Units of Production for Conversion Cost using the FIFO method? 2. What is the Equivalent Units of Production for Direct Materials using the Weighted Average method?
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.
Assume the following production data taken from the records of CONEY Manufacturing Co:
|
Transferred out |
130,000 units |
|
Started in process |
150,000 units |
|
Ending work in process (2/8 complete) |
45,000 units |
40% of the materials are added when the processing is halfway complete with the balance added when 80% complete. Beginning work in process, if any, needs 3/5 to be completed. There are no spoiled units.
1. What is the Equivalent Units of Production for Conversion Cost using the FIFO method?
2. What is the Equivalent Units of Production for Direct Materials using the Weighted Average method?
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