Data Section: Percent Units Conversion HINT: 60,000 210,000 30,000 40% Work in process, beginning Units completed during the months Work in process, ending Formulas in RED will be in units 70% Forumlas in BLUE will percentages Formulas in GREEN will be in dollars 1 2 13 To find started and completed: Completed units - beginning inventory Started during the month - ending inventory Costs to account for: Total 24 94,800 Beginning work in process 15 16 14 %24 151,200 Materials added Conversion costs incurred 24 600,300 17 Total costs to be accounted for FORMULA 1 18 19 Cost assignment 20 Direct Mat. % Conversion % Direct Beginning Inventory Direct Mat. Added During Conversion Equiv. Units FORMULA 8 FORMULA 12 FORMULA 15 FORMULA 19 FORMULA 22 FORMULA 25 FORMULA 9 FORMULA 13 FORMULA 16 FORMULA 20 FORMULA 23 FORMULA 26 FORMULA 10 FORMULA 14 FORMULA 17 FORMULA 21 FORMULA 24 FORMULA 27 Added During Whole Units the Month the Month Equiv. Units Materials Conversion Total 21 22 23 24 25 26 27 28 $0 FORMULA 2 FORMULA 5 Beg. Work in process Started & Completed Ending Work in process SO FORMULA 3 FORMULA 6 $0 FORMULA 3 FORMULA 7 $0 $0 $0 $0 Total Amount reported on the balance sheet as: Finished goods inventory Work in Process inventory FORMULA 29 Direct Mat. Conversion FORMULA 28 Cost per FORMULA 11 FORMULA 18 29 equivalent unit 30 31 Sheet1 Sheet2 Sheet3 +
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.
Equivalent units are computed on the basis of the percentage completion of the units.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
