Consider the following data. Department B of Ethel Manufacturing Corp. suffers an average of evaporation loss 10%. The following data were obtained for the month of October, 2019 Units: In process, October 1 (2/5 completed) Received from Department A 9,600 gallons 30,000 gallons

Consider the following data. Department B of Ethel Manufacturing Corp. suffers an average of evaporation loss 10%. The following data were obtained for the month of October, 2019 Units: In process, October 1 (2/5 completed) Received from Department A 9,600 gallons 30,000 gallons

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

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

100%

a. Under FIFO, how many units is the Equivalent Units Of Production (EUP)
b. Under FIFO, how much is the unit cost?

Consider the following data. Department B of Ethel Manufacturing Corp. suffers an average of evaporation loss of
10%. The following data were obtained for the month of October, 2019
Units:
|In process, October 1 (2/5 completed)
Received from Department A
9,600 gallons
30,000 gallons
25,200 gallons
11,700 gallons
Finished and transferred
In process, October 31 (1/4 complete)
Costs:
In process beginning
Received from Department A
P5,760
30,000
Current costs
Materials
19,440
Labor
7,290
Overhead
2,430

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