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

Calculate the cash flows for each alternative, A company is evaluating the ...

A company is evaluating the following lease or buy option. A four year lease with annual payments of $25,000 payable at the beginning of the year.The tax shield is available at

Long-term liabilities, Long-Term Liabilities: These are usually for mo...

Long-Term Liabilities: These are usually for more than one year. They cover almost all the outsider's liabilities not comprised in the current liabilities and provisions. Such

Changes in product mix, Changes in Product Mix A change in product mix...

Changes in Product Mix A change in product mix in which individual products have different contribution will contain different contribution. Sales ratio will conclude in a cha

Determine the ethicality of the events within the case, Write a 1,200- to 1...

Write a 1,200- to 1,500-word paper explaining the legal aspects, financial standards involved, and ethicality of the Excello Telecommunications case. Your paper should include the

Profit variances, PROFIT VARIANCES Sales variances are important as the...

PROFIT VARIANCES Sales variances are important as they have a direct bearing on profits earned by the organization.   thus, they can be used as the basis of determining profit

Determine when to stock, Determine When to Stock It will be influence ...

Determine When to Stock It will be influence with the inventory system in place as given: 1. Periodic order system. The firm obtains a new order of the amo

What is amount that lifo liquidation added to gross margin, Q. Given the be...

Q. Given the below information, what is the dollar amount that the LIFO liquidation added to gross margin?   Number of Units Price per Unit

Material sampling - analyszing direct materials cost, A. Material Sampling ...

A. Material Sampling -Analyzing Direct Material Costs You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the pro

Overhead anaylysis, the annual overhead costs for abc ltd which has 3 produ...

the annual overhead costs for abc ltd which has 3 production centeres and 2 service centers are as follows. indirect wages & supervision X 2million Y 2million 3 production departme

Calculate the cash flow - capital cost, A company is evaluating the followi...

A company is evaluating the following lease or buy option.  A four year lease with annual payments of $25,000 payable at the beginning of the year. The tax shield is available a

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