Production Cost Accounting

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: Production Data: Pounds in process, August 1; materials 100% complete; conversion 70% complete 3,000 Pounds started into production during August 85,000 Pounds completed and transferred out ? Pounds in process, August 31; materials 80% complete; conversion 30% complete 6,000 Cost Data: Work in process inventory, August 1: Materials cost $900 Conversion cost $5,900 Cost added during May: Materials cost $151,000 Conversion cost $161,700 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. Instructions: 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. Comments from Support Team: