Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February: Work-in-process inventory, February 1 5,000 trusses Direct materials: 100% complete $ 11,480 Conversion: 40% complete $ 16,258 Units started during February 19,000 trusses Units completed during February and transferred out 18,000 trusses Work-in-process inventory, February 29 Direct materials: 100% complete Conversion: 20% complete Costs incurred during February Direct materials $ 60,040 Conversion $ 93,092 Required: Using the FIFO method, calculate the following: 1-a) Costs per equivalent unit. 1-b) Cost of goods completed and transferred out. 1-c) costs remaining in the work-in-process inventory account. 2) Assume that you are the company's controller. The production department's february equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 20 to 40% to lower the unit costs, how much would unit cost be affected by this request? Round all of the answers to 4 decimal places.
Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February: Work-in-process inventory, February 1 5,000 trusses Direct materials: 100% complete $ 11,480 Conversion: 40% complete $ 16,258 Units started during February 19,000 trusses Units completed during February and transferred out 18,000 trusses Work-in-process inventory, February 29 Direct materials: 100% complete Conversion: 20% complete Costs incurred during February Direct materials $ 60,040 Conversion $ 93,092 Required: Using the FIFO method, calculate the following: 1-a) Costs per equivalent unit. 1-b) Cost of goods completed and transferred out. 1-c) costs remaining in the work-in-process inventory account. 2) Assume that you are the company's controller. The production department's february equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 20 to 40% to lower the unit costs, how much would unit cost be affected by this request? Round all of the answers to 4 decimal places.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 2BE: Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots From...
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Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February:
Work-in-process inventory, February 1 5,000 trusses
Direct materials: 100% complete $ 11,480
Conversion: 40% complete $ 16,258
Units started during February 19,000 trusses
Units completed during February and transferred out 18,000 trusses
Work-in-process inventory, February 29
Direct materials: 100% complete
Conversion: 20% complete
Costs incurred during February
Direct materials $ 60,040
Conversion $ 93,092
Required:
Using the FIFO method, calculate the following: 1-a) Costs per equivalent unit. 1-b) Cost of goods completed and transferred out. 1-c) costs remaining in the work-in-process inventory account. 2) Assume that you are the company's controller. The production department's february equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 20 to 40% to lower the unit costs, how much would unit cost be affected by this request? Round all of the answers to 4 decimal places.
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