A company produces one product and uses process costing. It provides the following for the month of April: Units completed (finished) in April: 2000 Units sold in April 1840 Cost per equivalent unit in April: $5.41
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.
4)
A company produces one product and uses
| Units completed (finished) in April: | 2000 |
| Units sold in April | 1840 |
| Cost per equivalent unit in April: | $5.41 |
At the beginning of April, there were 231 units in beginning Finished Goods Inventory, with an assigned product cost of $5.25 each. If the company uses FIFO (first-in-first-out) to value Finished Goods Inventory, what will Cost of Goods Sold be for April? (Round all intermediate calculations and the final answer to the nearest dollar and cents.)
5)
A company produces one product and uses process costing. In February, they calculate the following costs per equivalent unit for their two cost categories, materials and conversion costs:
Materials cost per equivalent unit: $1.89
Conversion cost per equivalent unit: $0.50
What is the best estimate of the incremental cash cost of producing one unit of this company’s product? (Choose the best answer.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
