In the month of April, a department had 500 units in the beginning work in process inventory that were 60% complete. These units had $65000 of materials costs and $49000 of conversion costs. Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. During April, 14000 units were completed and transferred to the finished goods inventory and there were 2800 units that were 30% complete in the ending work in process inventory on April 30. During April, manufacturing costs charged to the department were: Materials $2119000; Conversion costs $2399600. (Round unit matrial and coversion cost to 0 decimal place, e.g. 135.) The cost assigned to the units transferred to finished goods during April was $4244000. $4114000. $4146000. $4130000.
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.
In the month of April, a department had 500 units in the beginning work in process inventory that were 60% complete. These units had $65000 of materials costs and $49000 of conversion costs. Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. During April, 14000 units were completed and transferred to the finished goods inventory and there were 2800 units that were 30% complete in the ending work in process inventory on April 30. During April,
(Round unit matrial and coversion cost to 0 decimal place, e.g. 135.)
The cost assigned to the units transferred to finished goods during April was
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