The total cost per equivalent unit for September under FIFO is: Frozen Inc. adds materials at the beginning of the process in department USB. Conversioncosts were 70% complete as to the 9,500 work-in-process units on September 1 and 40%incomplete as to the 7,000 work-in-process units on September 30. During September, 12,000units were completed and transferred to the next department. An analysis of the cost relatingto work-in-process on September 1 and to production activity for September is as follows:Work-in-process, September 1MaterialsP10,000P12,000Conversion CostsCosts incurred during SeptemberMaterialsP45,000Conversion CostsP60,000Thetotal cost per equivalent unit for September under FIFO is:

FIFO Means ( first in first out } is a valuation method in which the assest produced or acquired…

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Business

Accounting

costs

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

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

100%

The total cost per equivalent unit for September under FIFO is:

Frozen Inc. adds materials at the beginning of the process in department USB. Conversion
costs were 70% complete as to the 9,500 work-in-process units on September 1 and 40%
incomplete as to the 7,000 work-in-process units on September 30. During September, 12,000
units were completed and transferred to the next department. An analysis of the cost relating
to work-in-process on September 1 and to production activity for September is as follows:
Work-in-process, September 1
Materials
P10,000
P12,000
Conversion Costs
Costs incurred during September
Materials
P45,000
Conversion Costs
P60,000
The
total cost per equivalent unit for September under FIFO is:

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