Work in process, beginning Started into production Completed and transferred out Work in process, ending Work in process, beginning Cost added during June Units 78,000 384,000 374,000 88,000 Materials Required 1 Required 2 $ 30,400 $ 326,000 Required 3 Percent Completed. Materials 70% 75% Required 4 Conversion $ 10,800 $ 230,760 Required: For June: 1. Calculate the Blending Department's equivalent units of production for materials and conversion. 2. Calculate the Blending Department's cost per equivalent unit for materials and conversion. Complete this question by entering your answers in the tabs below. 3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total. 4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total. 5. Prepare a cost reconciliation report for the Blending Department. Conversion 40% 25% Required 5 Calculate the Blending Department's equivalent units of production for materials and conversion In June.
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.
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