c. Calculation of unit costs. Round your answer to the nearest cent. $fill in the blank -----per unit d. Cost of ending work in process and cost of goods transferred out. Cost of ending work in process: $fill in the blank Cost of goods transferred out: $fill in the blank e. A cost reconciliation.
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.
FIFO Method, Two-Department Analysis
Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February:
| Molding | Assembly | |||
| Beginning inventories: | ||||
| Physical units | 10,000 | 8,000 | ||
| Costs: | ||||
| Transferred in | — | $45,300 | ||
| Direct materials | $22,000 | — | ||
| Conversion costs | $13,800 | $16,700 | ||
| Current production: | ||||
| Units started | 25,000 | ? | ||
| Units transferred out | 30,000 | 35,000 | ||
| Costs: | ||||
| Transferred in | — | ? | ||
| Direct materials | $56,750 | $39,550 | ||
| Conversion costs | $103,500 | $136,500 | ||
| Percentage of completion: | ||||
| Beginning inventory | 40% | 50% | ||
| Ending inventory | 80 | 50 |
Required:
c. Calculation of unit costs. Round your answer to the nearest cent.
$fill in the blank -----per unit
d. Cost of ending work in process and cost of goods transferred out.
Cost of ending work in process: $fill in the blank
Cost of goods transferred out: $fill in the blank
e. A cost reconciliation.
| Costs to account for: | |
|---|---|
| Beginning work in process | $fill in the blank |
| Costs incurred | fill in the blank |
| Total costs to account for | $fill in the blank |
| Costs accounted for: | |
|---|---|
| Transferred out | $fill in the blank |
| Ending work in process | fill in the blank |
| Total costs accounted for | $fill in the blank |
2. Prepare
| (a) | Work in Process-Molding | fill in the blank | |
| Materials Inventory | fill in the blank | ||
| (b) | Work in Process-Molding | fill in the blank | |
| Conversion Costs-Control | fill in the blank | ||
| (c) | Work in Process-Assembly | fill in the blank | |
| Work in Process-Molding | fill in the blank |
d. Compute the following. For interim computations, carry amounts out to four decimal places. Round your final answers to the nearest dollar.
Cost of ending work in process: $fill in the blank
Cost of goods transferred out: $fill in the blank
e. A cost reconciliation. When necessary, round equivalent cost per unit to four decimal places, and round all other amounts to the nearest dollar.
| Costs to account for: | |
|---|---|
| Beginning work in process | $fill in the blank |
| Costs incurred | fill in the blank |
| Total costs to account for | $fill in the blank |
| Costs accounted for: | |
|---|---|
| Transferred out | $fill in the blank |
| Ending work in process | fill in the blank |
| Total costs accounted for | $fill in the blank |
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