Bright Lamp Company has budgeted its conversion cost for small lamp production as $85,000 for 1,300 production hours. Each unit produced by the cell requires 15 minutes of process time. During the month, 3,800 units are manufactured in the cell. The estimated materials cost is $18 per unit. Journalize entries for the following: In your computations, round per unit cost to two decimal places and use rounded amount in subsequent calculations. If required, round your final answers to the nearest dollar. a. Materials are purchased on account to produce 4,000 units. fill in the blank b38b7bf9cfc7f9c_2 fill in the blank b38b7bf9cfc7f9c_3 fill in the blank b38b7bf9cfc7f9c_5 fill in the blank b38b7bf9cfc7f9c_6 b. Conversion costs are applied to 3,800 units of production. fill in the blank 62f974fecf90fa6_2 fill in the blank 62f974fecf90fa6_3 fill in the blank 62f974fecf90fa6_5 fill in the blank 62f974fecf90fa6_6 c. The cell completes 3,650 units, which are placed into finished goods. fill in the blank f2ae3900efc0f85_2 fill in the blank f2ae3900efc0f85_3 fill in the blank f2ae3900efc0f85_5 fill in the blank f2ae3900efc0f85_6
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.
Bright Lamp Company has budgeted its conversion cost for small lamp production as $85,000 for 1,300 production hours. Each unit produced by the cell requires 15 minutes of process time. During the month, 3,800 units are manufactured in the cell. The estimated materials cost is $18 per unit.
In your computations, round per unit cost to two decimal places and use rounded amount in subsequent calculations. If required, round your final answers to the nearest dollar.
a. Materials are purchased on account to produce 4,000 units.
| fill in the blank b38b7bf9cfc7f9c_2 | fill in the blank b38b7bf9cfc7f9c_3 | ||
| fill in the blank b38b7bf9cfc7f9c_5 | fill in the blank b38b7bf9cfc7f9c_6 |
b. Conversion costs are applied to 3,800 units of production.
| fill in the blank 62f974fecf90fa6_2 | fill in the blank 62f974fecf90fa6_3 | ||
| fill in the blank 62f974fecf90fa6_5 | fill in the blank 62f974fecf90fa6_6 |
c. The cell completes 3,650 units, which are placed into finished goods.
| fill in the blank f2ae3900efc0f85_2 | fill in the blank f2ae3900efc0f85_3 | ||
| fill in the blank f2ae3900efc0f85_5 | fill in the blank f2ae3900efc0f85_6 |
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