COST ACCOUNTING

Cost Accounting



Cost Accounting

Question 2: Practical Question

 

 

Conversion

 

 

Units

Percentage Completed

 

Started

14000

 

Completed and transferred

13500

 

Work in process, May 1

5000

80%

 

Work in process, May 31

4000

30%

 

 

 

 

Materials

Labor and Overhead

Transferred In

Cost of May

 

Work in process, May 1

25860

32524

40312

Added during the month

72940

97112

117160

a

Units transferred out

13500

Add: Equivalent units in ending inventory

4000 x 100%

4000

Equivalent Units for materials

17500

b

Units transferred out

13500

Add: Equivalent units in ending inventory

4000 x 30%

1200

Equivalent Units for conversion

14700

(32524 + 97112)/14700

8.82

per unit

c

Materials cost per equivalent unit

(25860 + 72940)/17500

5.65

per unit

d

Materials Cost 4000 x 5.65

22583

Conversion 4000 x 30% x 8.82

10583

Cost assigned to ending inventory

33165

e

Costs transferred out

137500 x (8.2 + 5.65)

195271

Question 3: Practical Question

Model A

Model B

Units produced for the period

60000

100000

160000

Direct labor hours

48000

52000

Engineering Labor (hours)

8000

12000

Setups

40

60

Kilowatt hours

10000

14000

Overhead Activities and ...