Required: Prepare åFi-4 Zealand Company in its production process points out some units as spoiled (normal).Books of accounts shows following data for the month of December:Units started5,000 unitsUnits completed3,000 unitsNormal spoilage700 units1,300 unitsEnding inventoryinaing inventory is fully completed with respect to materials. Direct material introducedinto production amounted to P80,000.compute the cost per equivalent unit

Units completed = 3000 units Normal Spoilage = 700 units Ending inventory (100% Direct Material) =…

Answered: compute the cost per equivalent unit

Business

Accounting

compute the cost per equivalent unit

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

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Required: Prepare å
Fi-4 Zealand Company in its production process points out some units as spoiled (normal).
Books of accounts shows following data for the month of December:
Units started
5,000 units
Units completed
3,000 units
Normal spoilage
700 units
1,300 units
Ending inventory
inaing inventory is fully completed with respect to materials. Direct material introduced
into production amounted to P80,000.
compute the cost per equivalent unit

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