Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
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
Ending Inventory
2,000
1, 200
12,000
______
_______
Equivalent Units
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.
Example of Methods of Allocating Service Costs Suppose the following data: User department Unit of Service Provided Costs Prior to Service Dep
what is cost
A 1- year Canadian bond with a face value of 5000 can be purchased at 4800. a) Calculate the nominal interest rate in Canada. b) if the Canadian dollar is expected to depreci
why is there a need for cost accounting?
SD manufactures and sells a small range of timber based products. The main differences b/w the products are their size and the type of timber they used. SD prepares annual budgets
Chemical Recovery Company uses common machinery to manufacture two products. Each year, the company has a total of four productions runs, which is two production runs for each pro
Budgetary Planning and Control Budgeting refers to the process of quantifying the plans of an organization such as to enable it get its objectives in the defined duration. Th
What are investment appraisal methods when opening a new project?
A 1- year Canadian bond with a face value of 5000 can be purchased at 4800. a) Calculate the nominal interest rate in Canada. b) If the Canadian dollar is expected to depreci
What type of activity could a company engage in to improve their cash flows in their Cash Flows Statement? Is this ethical? Could borrowing money make the cash from operations be
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd