BU247 Lecture Notes - Breakfast Cereal, Weighted Arithmetic Mean
Document Summary
Job order costing: accumulates the costs for a specific order because the orders tend to vary from customer to customer. Process costing: all products are identical such as soda drinks and breakfast cereal. Two different costs: direct material and conversion costs (that goes through different process) all manufacturing costs that are not direct material costs. Generally 100% of the direct material is in the work in process account or assume it if the question does not state it. Final step is to use equivalent material and conversion costs to allocate manufacturing costs to the ending inventories. 3-47 the information below pertains to october production at zippy company"s bottling plant, which produces and bottles sports drinks. Each unit consists of a case of 12 bottles. Required: using the weighted average method, determine the number of equivalent units of production for materials and conversion during october. Wip october 31st (4000 x 40% complete and 4000 x 25%)
