How many units were started into production in a period if there were zero units of beginning work in process inventory, 1,300 units in ending work in process inventory, and 21,000 completed and transferred out units? Number of units started into production units
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
EQUIVALENT UNITS OF PRODUCTION
Equivalent Production is represents the production of a process in terms of completed units. In other words it means converting the incomplete production units into its equivalent of complete units.
There are two methods for computation of Equivalents Units Production :—
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- First in First Out
- Weighted Average Method
- Equivalent units of work-in-progress = Actual no.of units in process of manufacture x Percentage of work completed
- Units Started into Production = Unit Transferred Out + Ending WIP - Beginning WIP
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