The following information is available. Beginning balance in work in process is $4,600. Costs incurred during the month: materials $4,060, labor $2,200 and overhead $1,550. Production records show that there were 600 units in beginning inventory, 1,200 units were started and 1,300 units were completed and transferred out. All materials are added at the beginning of the process. Beginning inventory is 20% complete and ending inventory is 40% complete. Answer the following questions. Please show your calculations. a. How many units are in process at the end of the month? b. What is the unit materials cost for the month? c. What is the unit conversion cost for the month? d. What is the total cost of the units completed and transferred out? e. What is the cost of the ending inventory?
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.
The following information is available. Beginning balance in work in process is $4,600. Costs incurred during the month: materials $4,060, labor $2,200 and
a. How many units are in process at the end of the month?
b. What is the unit materials cost for the month?
c. What is the unit conversion cost for the month?
d. What is the total cost of the units completed and transferred out?
e. What is the cost of the ending inventory?
Step by step
Solved in 3 steps with 3 images
