FIFO method of process costing, equivalent units. Consider the following data for the Assembly Division of Fenton Watches, Inc.: Physical Units Direct Conversion (Watches) Materials Costs Beginning work in process (May 1)80 493, 360 Started in May 2009 600 91, 040 500 Completed during May 2009 460 Ending work in process (May 31)b 220 vag Total costs added during May 2009 3, 220, 0001, 392, 000 Degree of completion: direct materials, 90%; conversion costs, 40%. Degree of completion: direct materials, 60%; conversion costs, 30%. 1- When cost accountants use Process Costing systems. 2. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. 3. Assign cost to a) completed and transferred out units, and b) Work in Process (ending).
FIFO method of process costing, equivalent units. Consider the following data for the Assembly Division of Fenton Watches, Inc.: Physical Units Direct Conversion (Watches) Materials Costs Beginning work in process (May 1)80 493, 360 Started in May 2009 600 91, 040 500 Completed during May 2009 460 Ending work in process (May 31)b 220 vag Total costs added during May 2009 3, 220, 0001, 392, 000 Degree of completion: direct materials, 90%; conversion costs, 40%. Degree of completion: direct materials, 60%; conversion costs, 30%. 1- When cost accountants use Process Costing systems. 2. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. 3. Assign cost to a) completed and transferred out units, and b) Work in Process (ending).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:FIFO method of process costing, equivalent units. Consider the following data for the
Assembly Division of Fenton Watches, Inc.: Physical Units Direct Conversion (Watches)
Materials Costs Beginning work in process (May 1)80 493, 360 Started in May
2009 600 91, 040 500 Completed during May 2009 460 Ending work in process (May 31)b 220
vag Total costs added during May 2009 3, 220, 0001, 392, 000 Degree of completion: direct
materials, 90%; conversion costs, 40%. Degree of completion: direct materials, 60%;
conversion costs, 30%. 1- When cost accountants use Process Costing systems. 2. Compute
equivalent units for direct materials and conversion costs. Show physical units in the first
column of your schedule. 3. Assign cost to a) completed and transferred out units, and b)
Work in Process (ending).
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