Brown Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for: Units, beginning work in process Units started Total units to account for Units accounted for: Units, ending work in process Units completed Units accounted for 4,000 (40% complete) |||| 8,000 (50% complete) Costs in beginning work in process for the Polishing Department were direct materials, $5,000; con- version costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.

Brown Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for: Units, beginning work in process Units started Total units to account for Units accounted for: Units, ending work in process Units completed Units accounted for 4,000 (40% complete) |||| 8,000 (50% complete) Costs in beginning work in process for the Polishing Department were direct materials, $5,000; con- version costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.

Name: Assume the company uses the FIFO method.Prepare a schedule of equivale
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Description: Assume the company uses the FIFO method.Prepare a schedule of equivalent units, and compute the unit cost for the month of December. Brown Company has a product that passes through two processes: Grinding and Polishing. DuringDecember, the Grinding D

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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