A company uses the FIFO method for inventory costing. At the start of the period the production department had 36,000 units in beginning Work in Process inventory which was 48% complete; the department completed and transferred 173,000 units. At the end of the period, 30,000 units were in the ending Work in Process inventory and are 75% complete. The production department had labor costs in the beginning goods in process inventory of $107,000 and total labor costs added during the period are $727,150. Compute the equivalent cost per unit for labor.
A company uses the FIFO method for inventory costing. At the start of the period the production department had 36,000 units in beginning Work in Process inventory which was 48% complete; the department completed and transferred 173,000 units. At the end of the period, 30,000 units were in the ending Work in Process inventory and are 75% complete. The production department had labor costs in the beginning goods in process inventory of $107,000 and total labor costs added during the period are $727,150. Compute the equivalent cost per unit for labor.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 1E: At the end of the first year of operations, 21,500 units remained in the finished goods inventory....
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A company uses the FIFO method for inventory costing. At the start of the period the production department had 36,000 units in beginning Work in Process inventory which was 48% complete; the department completed and transferred 173,000 units. At the end of the period, 30,000 units were in the ending Work in Process inventory and are 75% complete. The production department had labor costs in the beginning goods in process inventory of $107,000 and total labor costs added during the period are $727,150. Compute the equivalent cost per unit for labor.
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