At the end of April, Department A at Tucson Company transferred all production to finished goods inventory. During May, the department started and fully completed 80 units. During June, beginning work in progress did not require any work with respect to direct materials and required 65% of conversion costs to be added. Manufacturing costs for May were as follows: Direct materials $11,960,000 Conversion costs $ 9,752,000 The cost per equivalent unit for direct materials was $92,000. How many units were brought into production in May? a) 106 b) 130 c) 236 d) The number cannot be determined without knowing whether Tucson uses the FIFO approach or the weighted average cost approach to costing.
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.
9. At the end of April, Department A at Tucson Company transferred all production to finished goods inventory. During May, the department started and fully completed 80 units. During June, beginning work in progress did not require any work with respect to direct materials and required 65% of conversion costs to be added.
Direct materials $11,960,000
Conversion costs $ 9,752,000
The cost per equivalent unit for direct materials was $92,000.
How many units were brought into production in May?
a) 106
b) 130
c) 236
d) The number cannot be determined without knowing whether Tucson uses the FIFO approach or the weighted average cost approach to costing.
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