Find out the cost per unit, Cost Accounting

Assignment Help:

Find Out the Cost per Unit

Material A is added at the start of a production process. Overheads and Labor are added continuously throughout the production process. At the ending of the process, 10,000 units were complete and 2,000 units were 60 percent complete as per overheads and labor.  The cost of raw materials employed throughout the period amounted to shs.220, 000, labour shs.150, 000 and overheads shs.74, 000.  There was no opening inventory.

Required 

Find out the cost per unit of both the completed units, and the units in the end inventory.

Solution

 

 

Physical Units

 

Materials

Conversion (direct Labour and overheads

Completed

10,000

  10,000

  10,000

Ending Inventory

  2,000

    2,000

   1, 200

 

12,000

______

_______

Equivalent Units

 

  12,000

  11,200

Cost for the Period

 

220,000

224,000

Cost per Equivalent Unit:

Shs.18.33

220,000/1,200=sh18.33    224,000/11,200=sh20

Total Cost/Equivalent Unit

=18.33+sh.38.33

 

 






In the above illustrations, there is no opening work in process.  When it exists, we need to adopt a method of valuing it and incorporating it into the process accounts.


Related Discussions:- Find out the cost per unit

Relevant costs, What are investment appraisal methods when opening a new pr...

What are investment appraisal methods when opening a new project?

Cvp analysis in situations subject to change, CVP Analysis in Situations Su...

CVP Analysis in Situations Subject To Change Revenue and Cost will change and also sales volume because of a number of factors involving: a) Increased competition may need

Goods and services tax, William Potter is a plumber currently operating as ...

William Potter is a plumber currently operating as a Sole Trader in Levin. William has approached you, a tax accountant, for your advice on certain tax matters. William's brothe

Cash flow statement, In this section we have tried to develop the concept o...

In this section we have tried to develop the concept of flow of funds inside the organization. Starting along with the funds requirement for an organization, we have tried to trace

Estimate finished goods cost of goods sold , ln an attempt to conceal a the...

ln an attempt to conceal a thefi of funds, Kaito Kid, controller of Shinichi Products, lnc. placed a bomb in the company s record vault. The ensuing explosion left only fragments o

Compute the variable cost, A soft drink maker wants to expand into a neighb...

A soft drink maker wants to expand into a neighboring country.  They want the product bottled in that country to avoid political issues and to enhance the local image of the produc

Ow much overhead will be assigned to each sailboat produced?, ShipShape Com...

ShipShape Company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of two different departments, design

Labour costs, Labour Costs Definition of Labour Cost A labour c...

Labour Costs Definition of Labour Cost A labour cost refers to all the costs incurred in compensating the human resources used in the production process to provide a us

Gross rental revenue, Operating Income 1. Operating Income is derived f...

Operating Income 1. Operating Income is derived from two sources, Rental Income from businesses operating in the warehouse complex and Interest Income of the project operating

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd