Brite Ideas, Inc., mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Brite Ideas uses process costing and had the following unit production information available for the months of June and July. June July Number of lamps in beginning work in process 870 1,100 Lamps transferred to finished goods 3,000 2,980 Number of lamps in ending work in process 1,100 800 In June, the lamps in beginning work in process were approximately 90 percent complete, while those in ending work in process were only 30 percent complete. In July, the units remaining in ending work in process were 80 percent complete. All lamps in ending work in process are finished during the next month. Required: a. For the month of June, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead. b. For the month of July, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead. a. b. Cost Categories June: Body materials Wiring materials Labor & Overhead July: Body materials Wiring materials Labor & Overhead Equivalent Units
Brite Ideas, Inc., mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Brite Ideas uses process costing and had the following unit production information available for the months of June and July. June July Number of lamps in beginning work in process 870 1,100 Lamps transferred to finished goods 3,000 2,980 Number of lamps in ending work in process 1,100 800 In June, the lamps in beginning work in process were approximately 90 percent complete, while those in ending work in process were only 30 percent complete. In July, the units remaining in ending work in process were 80 percent complete. All lamps in ending work in process are finished during the next month. Required: a. For the month of June, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead. b. For the month of July, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead. a. b. Cost Categories June: Body materials Wiring materials Labor & Overhead July: Body materials Wiring materials Labor & Overhead Equivalent Units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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.
Topic Video
Question
Please do not give solution in image format thanku
Transcribed Image Text:Brite Ideas, Inc., mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the
process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly
throughout the manufacturing process. Brite Ideas uses process costing and had the following unit production information available for
the months of June and July. June July Number of lamps in beginning work in process 870 1,100 Lamps transferred to finished goods
3,000 2,980 Number of lamps in ending work in process 1,100 800 In June, the lamps in beginning work in process were approximately
90 percent complete, while those in ending work in process were only 30 percent complete. In July, the units remaining in ending work
in process were 80 percent complete. All lamps in ending work in process are finished during the next month. Required: a. For the
month of June, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and
labor and overhead. b. For the month of July, calculate the equivalent units of production for the three major cost categories-body
materials, wiring materials, and labor and overhead.
a.
Cost Categories
June:
Body materials
Wiring materials
Labor & Overhead
b. July:
Body materials
Wiring materials
Labor & Overhead
Equivalent Units
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education