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 contribution to sales ratio, Q. Calculate contribution to sales r...

Q. Calculate contribution to sales ratio? Contribution per unit= sales price per unit less variable cost per unit Break-even volume = Fixed overhead/Contribution per uni

Calculate development cost, Candler Inc a computer software development fir...

Candler Inc a computer software development firm has stock outstanding as follows: 40,000 shares of $2 nonparticipating, noncumulative preferred stock of $10 par, and 250,000 share

The average cost of production, Distinguish between,     (i)  short-run ...

Distinguish between,     (i)  short-run variable costs & long-run variable costs, and give an example of each one;   (ii)  the marginal cost &  the average cost of production

Purchase procedure, what is the procedure of purchase of materials in large...

what is the procedure of purchase of materials in large organisation?

the meaning of the fixed production, Describe the meaning of the fixed pro...

Describe the meaning of the fixed production overhead variances calculated under the standard absorption costing system and talk about their usefulness to the management of X Ltd.

Accounting for job order costing, Accounting for Job Order Costing ...

Accounting for Job Order Costing 1.  Direct Labor  Dr W.I.P. Control Account Cr Cash Account 2.  Accrued Direct Wages Dr W.I.P. Control Account Cr Wages

Why are marginal costs increasing, 1. Why are marginal costs increasing? Wh...

1. Why are marginal costs increasing? Why are they not always constant? You may give examples in some industries or just state two reasons at least.

Objective type question, 9. When in the management process do managers seek...

9. When in the management process do managers seek an answer to the question "Did we meet our cost-reduction goals for non-value-adding activities?" a. Planning b. Performing c. Ev

Allocation of joint costs, Allocation of Joint Costs Whereas two or mo...

Allocation of Joint Costs Whereas two or more products of relatively high value emerge simultaneously from a single process, they are named as joint products.  The processes s

Irr, The following data pertains to an investment proposal: Required invest...

The following data pertains to an investment proposal: Required investment $400,000 Annual cost savings $105,700 Projected life of investment 6 years Projected salvage value $0 Req

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