ABC Products Company uses process costing to manufacture its products. For June, the company had the following data. Beginning work in process inventory 4,500 units Degree of completion 25% Units started in June 15,000 units Units completed 17,500 units Ending work in process inventory 2.000 units Degree of completion 75% Cost of beginning work in process $5,250 Direct material costs, current $16,500 Conversion costs, current $23,945 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: a. Prepare a production cost worksheet using the FIFO method b. Prepare a production cost worksheet using the Weighted Average Method. c. Under which circumstances there will be no difference between using FIFO or Weighted Average Method for process costing. Please make your comments only for process costing not as an inventory cost flow approach.

ABC Products Company uses process costing to manufacture its products. For June, the company had the following data. Beginning work in process inventory 4,500 units Degree of completion 25% Units started in June 15,000 units Units completed 17,500 units Ending work in process inventory 2.000 units Degree of completion 75% Cost of beginning work in process $5,250 Direct material costs, current $16,500 Conversion costs, current $23,945 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: a. Prepare a production cost worksheet using the FIFO method b. Prepare a production cost worksheet using the Weighted Average Method. c. Under which circumstances there will be no difference between using FIFO or Weighted Average Method for process costing. Please make your comments only for process costing not as an inventory cost flow approach.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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