2. Jones Corporation uses a first-in, first-out (FIFO) process cost system. Jones has the following unit information for the month of August: Units Beginning work in process inventory, 100% complete for materials, 75% complete for conversion costs Units completed and transferred out 10,000 90,000 Ending work in process inventory, 100% complete for materials, 60% complete for conversion costs 8,000 The equivalent units of production for conversion costs for the month of August were: a. 87,300 units. b. 88,000 units. c. 92,300 units. d. 92,700 units. 3. Kimbeth Manufacturing uses a process cost system to manufacture dust density sen- sors for the mining industry. The following information pertains to operations for the month of May: Units Beginning work in process inventory, May 1 Started in production during May 16,000 100,000 Completed production during May Ending work in process inventory, May 31 92,000 24,000 The beginning inventory was 60% complete for materials and 20% complete for con- version costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs. Costs pertaining to the month of May are: • Beginning inventory costs: materials, $54,560; direct labor, $20,320; and factory overhead, $15,240. • Costs incurred during May: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160. Using the first-in, first-out (FIFO) method, the equivalent units of production for conversion costs are: a. 101,600 units. b. 85,600 units. c. 98,400 units. d. 88,800 units.
2. Jones Corporation uses a first-in, first-out (FIFO) process cost system. Jones has the following unit information for the month of August: Units Beginning work in process inventory, 100% complete for materials, 75% complete for conversion costs Units completed and transferred out 10,000 90,000 Ending work in process inventory, 100% complete for materials, 60% complete for conversion costs 8,000 The equivalent units of production for conversion costs for the month of August were: a. 87,300 units. b. 88,000 units. c. 92,300 units. d. 92,700 units. 3. Kimbeth Manufacturing uses a process cost system to manufacture dust density sen- sors for the mining industry. The following information pertains to operations for the month of May: Units Beginning work in process inventory, May 1 Started in production during May 16,000 100,000 Completed production during May Ending work in process inventory, May 31 92,000 24,000 The beginning inventory was 60% complete for materials and 20% complete for con- version costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs. Costs pertaining to the month of May are: • Beginning inventory costs: materials, $54,560; direct labor, $20,320; and factory overhead, $15,240. • Costs incurred during May: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160. Using the first-in, first-out (FIFO) method, the equivalent units of production for conversion costs are: a. 101,600 units. b. 85,600 units. c. 98,400 units. d. 88,800 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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:2. Jones Corporation uses a first-in, first-out (FIFO) process cost system. Jones has the
following unit information for the month of August:
Units
Beginning work in process inventory, 100% complete
for materials, 75% complete for conversion costs
Units completed and transferred out
10,000
90,000
Ending work in process inventory, 100% complete for
materials, 60% complete for conversion costs
8,000
The equivalent units of production for conversion costs for the month of August were:
a. 87,300 units.
b. 88,000 units.
c. 92,300 units.
d. 92,700 units.
3. Kimbeth Manufacturing uses a process cost system to manufacture dust density sen-
sors for the mining industry. The following information pertains to operations for the
month of May:
Units
Beginning work in process inventory, May 1
Started in production during May
16,000
100,000
Completed production during May
Ending work in process inventory, May 31
92,000
24,000
The beginning inventory was 60% complete for materials and 20% complete for con-
version costs. The ending inventory was 90% complete for materials and 40% complete
for conversion costs.
Costs pertaining to the month of May are:
• Beginning inventory costs: materials, $54,560; direct labor, $20,320; and factory
overhead, $15,240.
• Costs incurred during May: materials used, $468,000; direct labor, $182,880; and
factory overhead, $391,160.
Using the first-in, first-out (FIFO) method, the equivalent units of production for
conversion costs are:
a. 101,600 units.
b. 85,600 units.
c. 98,400 units.
d. 88,800 units.
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