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

Determine the depletion cost per board foot, Conan O'Brien Logging and Lumb...

Conan O'Brien Logging and Lumber Company owns 3,300 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $650 per acre. In 2012, O'Brien be

Advantages and disadvantages of group bonus plan, Advantages and Disadvanta...

Advantages and Disadvantages of Group Bonus Plan Benefits associated along with group bonus schemes involve i. It encourages teamwork and cooperation among workers ii.

Market value schedule, A Market Value Schedule (in one report),for the comp...

A Market Value Schedule (in one report),for the complex. This schedule should show the market value of the complex at the end of each year of the project.  Valuation method and oth

Closing a factory , i have a factory and 87 employees . we have a closure p...

i have a factory and 87 employees . we have a closure plan in 12 months. what would be the charges?

Marvin''s motors company (mmc) manufactures outboard, Marvin's Motors Compa...

Marvin's Motors Company (MMC) manufactures outboard motors for use on small to medium sized boats. MMC produces three models: the Standard, the Deluxe and the Performance. The comp

Job costing, the features and scopes of job costing

the features and scopes of job costing

Traditional Overhead Allocation and Activity Based Costing, The controller ...

The controller for U.S. Route 66 Truck Parts is comparing traditional overhead allocationwith ABC. After studying both approaches, the controller prepared the following list of fea

Commodities to stock, Commodities to Stock Employ Material Req...

Commodities to Stock Employ Material Requirement Planning From the Master Production Schedule the manager has determined such the products to be produced. A

Differential costing, DIFFERENTIAL COSTING Marginal costing is often co...

DIFFERENTIAL COSTING Marginal costing is often confused with differential costing. The word 'DIFFERENTIAL COSTING' means 'a technique used in the preparation of adhoc informati

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