[The following information applies to the questions displayed below.] Silver Company manufactures kites and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 40% for conversion) 58,000 units Direct materials $ 86,000 Conversion cost $ 116,000 Number of units started 164,000 units April costs Direct materials $ 232,000 Conversion cost $ 342,000 Work in process, April 30 (100% complete for materials, 20% for conversion) 83,000 units ! Required: Using the FIFO method, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit.
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.
Required information
[The following information applies to the questions displayed
below.]
Silver Company manufactures kites and has the following
information available for the month of April:
Work in process, April 1
(100% complete for materials, 40% for conversion) 58,000 units
Direct materials $ 86,000
Conversion cost $ 116,000
Number of units started 164,000 units
April costs
Direct materials $ 232,000
Conversion cost $ 342,000
Work in process, April 30
(100% complete for materials, 20% for conversion) 83,000 units
!
Required:
Using the FIFO method, complete each of the following steps:
1. Reconcile the number of physical units worked on during the period.
2. Calculate the number of equivalent units.
3. Calculate the cost per equivalent unit.
4. Reconcile the total cost of work in process.
Complete this question by entering your answers in the tabs below.
Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 d
to the nearest whole dollar amount.)
Required 1 Required 2 Required 3 Required 4
Current Period Costs
Prior Period
Costs
Direct
Materials Conversion Total Cost
Beginning Inventory
Started and Completed
Ending Inventory
Total Cost Accounted for $ 0 $ 0 $ 0 $
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