On March 1, 2019, Baltimore Company's beginning work in process inventory had 5,000 units. This is its only production department. Beginning WIP units were 50% complete to conversion costs. Baltimore introduces direct materials at the beginning of the production process. During March, a total of 28,200 units were started and the ending WIP inventory had 7,000 units which were 60% complete to conversion costs. Baltimore uses the weighted average method. Use this information to determine for March 2019 the equivalent units of production for conversion costs.
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.
On March 1, 2019, Baltimore Company's beginning work in process inventory had 5,000 units. This is its only production department. Beginning WIP units were 50% complete to conversion costs. Baltimore introduces direct materials at the beginning of the production process. During March, a total of 28,200 units were started and the ending WIP inventory had 7,000 units which were 60% complete to conversion costs. Baltimore uses the weighted average method. Use this information to determine for March 2019 the equivalent units of production for conversion costs.
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