Equivalent Units of Production The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Dec. 1 Bal., 5,700 units, 4/5 completed 3,876 31 Direct materials, 102,600 units 174,420 178,296 31 Direct labor 45,720 224,016 31 Factory overhead 25,722 249,738 31 Goods finished, 104,100 units 240,834 8,904 31 Bal., ? units, 3/5 completed 8,904 a. Determine the number of units in work in process inventory at December 31. fill in the blank ecc564fc900b07b_1 units b. Determine the equivalent units of production for direct materials and conversion costs in December. If an amount is zero, enter in "0".
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 of Production
The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production.
| ACCOUNT Work in Process—Baking Department | ACCOUNT NO. | |||||||
| Date | Item | Debit | Credit | Balance | ||||
| Debit | Credit | |||||||
| Dec. | 1 | Bal., 5,700 units, 4/5 completed | 3,876 | |||||
| 31 | Direct materials, 102,600 units | 174,420 | 178,296 | |||||
| 31 | Direct labor | 45,720 | 224,016 | |||||
| 31 | Factory overhead | 25,722 | 249,738 | |||||
| 31 | Goods finished, 104,100 units | 240,834 | 8,904 | |||||
| 31 | Bal., ? units, 3/5 completed | 8,904 |
a. Determine the number of units in work in process inventory at December 31.
fill in the blank ecc564fc900b07b_1 units
b. Determine the equivalent units of production for direct materials and conversion costs in December. If an amount is zero, enter in "0".
| Baking Department | |||
| Equivalent Units of Production for Direct Materials and Conversion Costs | |||
| For December | |||
| Whole Units | Equivalent Units Direct Materials |
Equivalent Units Conversion |
|
| Inventory in process, December 1 | fill in the blank e67813048fb4fd1_1 | fill in the blank e67813048fb4fd1_2 | fill in the blank e67813048fb4fd1_3 |
| Started and completed in December | fill in the blank e67813048fb4fd1_4 | fill in the blank e67813048fb4fd1_5 | fill in the blank e67813048fb4fd1_6 |
| Transferred to finished goods in December | fill in the blank e67813048fb4fd1_7 | fill in the blank e67813048fb4fd1_8 | fill in the blank e67813048fb4fd1_9 |
| Inventory in process, December 31 | fill in the blank e67813048fb4fd1_10 | fill in the blank e67813048fb4fd1_11 | fill in the blank e67813048fb4fd1_12 |
| Total | fill in the blank e67813048fb4fd1_13 | fill in the blank e67813048fb4fd1_14 | fill in the blank e67813048fb4fd1_15 |
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