Production Cost Accounting
Option #2: Production Cost Accounting
Maple, Inc., manufactures syrup that goes through three processing stages prior to completion. Information on work in the first department, blending, is given below for August:
Pounds in process, August 1; materials 100% complete; conversion 70% complete
Pounds started into production during August
Pounds completed and transferred out
Pounds in process, August 31; materials 80% complete; conversion 30% complete
Work in process inventory, August 1:
Cost added during May:
The company uses the weighted-average method. However, since FDA regulations are changing, management is considering converting to a job costing system of accounting so that costs may be traced by batch rather than process. Management is concerned about the advantages and disadvantages of doing so.
1.Compute the equivalent units of production.
2.Compute the costs per equivalent unit for the month.
3.Discuss with management the advantages and disadvantages of implementing a job costing system versus a process costing system.
Provide your answers in a clearly organized PowerPoint presentation of 4-5 slides. Check spelling and formatting for readability. Document your sources. Where applicable, written comments must be in accordance with the CSU-Global Guide to Writing and APA Requirements. Be sure to review the Module 3 Critical Thinking grading rubric, which may be accessed through the Course Information page.
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