work in process 200 units that are 100% complete as to materials and 88% complete as to conversion costs; units started into production 1,000 units; units transferred out to next department 990 units; ending work in process are 100% complete as to materials and 45% complete as to conversion costs. Manufacturing costs: Beginning work in process TL 8,500 materials, TL9,210 labor and TL2,500 manufacturing overhead costs. In current period, TL50,900 worth of materials, TL25,100 worth of labor and TL38,000 worth of manufacturing overhead costs are incurred. 1-Compute the material cost portion of the ending
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.
Use below information for Questions 1 to 4:
The smelting department of Company X has following production and cost data for September:
- Production: Beginning work in process 200 units that are 100% complete as to materials and 88% complete as to conversion costs; units started into production 1,000 units; units transferred out to next department 990 units; ending work in process are 100% complete as to materials and 45% complete as to conversion costs.
Manufacturing costs: Beginning work in process TL 8,500 materials, TL9,210 labor and TL2,500 manufacturing overhead costs. In current period, TL50,900 worth of materials, TL25,100 worth of labor and TL38,000 worth of manufacturing overhead costs are incurred.- 1-Compute the material cost portion of the ending inventory if the company uses WA method to compute equivalent units.
- 2-Compute the conversion cost portion of the ending inventory if the company uses FIFO method to compute equivalent units. method to compute equivalent units.
- 3-Compute the material cost portion of the transferred out inventory if the company uses FIFO method to compute equivalent units.
- 4-Compute the conversion cost portion of the transferred out inventory if the company uses WA method to compute equivalent units.
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