Vista Vacuum Company has the following production information for the month of March. All materials are added at the beginning of the manufacturing process. Units Beginning inventory of 3,000 units that are 100 percent complete for materials and 25 percent complete for conversion. 14,700 units started during the period. Ending inventory of 3,400 units that are 13 percent complete for conversion. Manufacturing Costs Beginning inventory was $19,800 ($9,700 materials and $10,100 conversion costs). Costs added during the month were $28,900 for materials and $48,900 for conversion ($27,600 labor and $21,300 applied overhead). I need help determining the costs to be assigned to the units transferred out and the units still in process.
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.
Vista Vacuum Company has the following production information for the month of March. All materials are added at the beginning of the manufacturing process.
Units
- Beginning inventory of 3,000 units that are 100 percent complete for materials and 25 percent complete for conversion.
- 14,700 units started during the period.
- Ending inventory of 3,400 units that are 13 percent complete for conversion.
- Beginning inventory was $19,800 ($9,700 materials and $10,100 conversion costs).
- Costs added during the month were $28,900 for materials and $48,900 for conversion ($27,600 labor and $21,300 applied overhead).
I need help determining the costs to be assigned to the units transferred out and the units still in process.
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