Duday Company manufactures Product ABC in a two- stage production cycle in Department 1 and 2. Materials are added at the end of the process in Department 2. Conversion costs for Department 2 were 50% complete as to the 6,000 units in Beginning WIP and 75% complete as to the to the 8,000 units in ending WIP, 12,000 units were completed and transferred out Department 2 during October. An analysis of the cost relating to WIP and production activity in Department 2 for October follows: Transferred in cost Materials Cost Conversion Cost Beg. WIP Cost Cost Added 12,000 2,500 1,000 29,000 5,000 5,000 Compute the total cost per unit transferred-out for October of Product ABC using FIFO.

Duday Company manufactures Product ABC in a two- stage production cycle in Department 1 and 2. Materials are added at the end of the process in Department 2. Conversion costs for Department 2 were 50% complete as to the 6,000 units in Beginning WIP and 75% complete as to the to the 8,000 units in ending WIP, 12,000 units were completed and transferred out Department 2 during October. An analysis of the cost relating to WIP and production activity in Department 2 for October follows: Transferred in cost Materials Cost Conversion Cost Beg. WIP Cost Cost Added 12,000 2,500 1,000 29,000 5,000 5,000 Compute the total cost per unit transferred-out for October of Product ABC using FIFO.

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Description: Show the solution in good accounting form Duday Company manufactures Product ABC in a two- stage production cycle in Department 1and 2. Materials are added at the end of the process in Department 2. Conversion costs forDepartment 2 were 50% complete

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Show the solution in good accounting form

Duday Company manufactures Product ABC in a two- stage production cycle in Department 1
and 2. Materials are added at the end of the process in Department 2. Conversion costs for
Department 2 were 50% complete as to the 6,000 units in Beginning WIP and 75% complete as
to the to the 8,000 units in ending WIP, 12,000 units were completed and transferred out
Department 2 during October. An analysis of the cost relating to WIP and production activity in
Department 2 for October follows:
Transferred in cost
Materials Cost
Conversion Cost
Beg. WIP Cost
Cost Added
12,000
2,500
1,000
29,000
5,000
5,000
Compute the total cost per unit transferred-out for October of Product ABC using FIFO.

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