Vaughn's is a brand of lotion created specifically for sensitive skin. The company, which goes by the same name, manufactures in small batches so the lotion retains its special qualities. The batch in proces on December 31 included 150 units, determined to be 60% complete as to conversion costs. DM costs had already been added, as all DM is added at the very beginning of processing. During January, Vaughn's started another 1,800 units, and by January 31, 1,850 units were completed, leaving 100 units still in process. Units in ending WIP Inventory were 50% complete for conversion costs. The following costs existed or were added to the WIP Inventory account in January. Total Costs DM Conversion Costs Costs in beginning WIP Inventory (from last period) $801 $346 $455 Costs added to WIP Inventory this period 3,419 1,214 2,205 Total costs to account for $4,220 $1,560 $2,660 Vaughn's uses the weighted-average method of process costing. (a) Your answer is correct. Complete Steps 1 and 2 of the template to determine the equivalent units of work done during January. (b) DM Total equivalent units of work done 1950 Conversion Cost 1900 Complete Steps 3-5 of the template to determine the cost per equivalent unit and to assign DM costs and conversion costs to the physical units of the period. Carefully label the total cost of units completed. (Round answers to 2 decimal places, e.g. 15.25.) DM Conversion Cost
Vaughn's is a brand of lotion created specifically for sensitive skin. The company, which goes by the same name, manufactures in small batches so the lotion retains its special qualities. The batch in proces on December 31 included 150 units, determined to be 60% complete as to conversion costs. DM costs had already been added, as all DM is added at the very beginning of processing. During January, Vaughn's started another 1,800 units, and by January 31, 1,850 units were completed, leaving 100 units still in process. Units in ending WIP Inventory were 50% complete for conversion costs. The following costs existed or were added to the WIP Inventory account in January. Total Costs DM Conversion Costs Costs in beginning WIP Inventory (from last period) $801 $346 $455 Costs added to WIP Inventory this period 3,419 1,214 2,205 Total costs to account for $4,220 $1,560 $2,660 Vaughn's uses the weighted-average method of process costing. (a) Your answer is correct. Complete Steps 1 and 2 of the template to determine the equivalent units of work done during January. (b) DM Total equivalent units of work done 1950 Conversion Cost 1900 Complete Steps 3-5 of the template to determine the cost per equivalent unit and to assign DM costs and conversion costs to the physical units of the period. Carefully label the total cost of units completed. (Round answers to 2 decimal places, e.g. 15.25.) DM Conversion Cost
Chapter1: Financial Statements And Business Decisions
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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.
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Transcribed Image Text:Vaughn's is a brand of lotion created specifically for sensitive skin. The company, which goes by the same name, manufactures in small batches so the lotion retains its special qualities. The batch in process
on December 31 included 150 units, determined to be 60% complete as to conversion costs. DM costs had already been added, as all DM is added at the very beginning of processing. During January,
Vaughn's started another 1,800 units, and by January 31, 1,850 units were completed, leaving 100 units still in process. Units in ending WIP Inventory were 50% complete for conversion costs. The
following costs existed or were added to the WIP Inventory account in January.
Total Costs
DM
Conversion Costs
Costs in beginning WIP Inventory (from last period)
$801
$346
$455
Costs added to WIP Inventory this period
3,419
1,214
2,205
Total costs to account for
$4,220
$1,560
$2,660
Vaughn's uses the weighted-average method of process costing.
(a)
Your answer is correct.
Complete Steps 1 and 2 of the template to determine the equivalent units of work done during January.
(b)
Total equivalent units of work done
DM
1950
Conversion Cost
1900
Complete Steps 3-5 of the template to determine the cost per equivalent unit and to assign DM costs and conversion costs to the physical units of the period. Carefully label the total cost of units
completed. (Round answers to 2 decimal places, e.g. 15.25.)
DM
Cost per equivalent unit
$
Total cost of units completed
$
Cost of units in ending inventory
$
$
Conversion Cost
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