For Items 5 - 6. GANDA Inc. employs FIFO process costing system in accounting for its product. For the year ended, December 31, 2020, the following data are provided: The 30,000 work-in-process inventory on January 1, 2020 is 40% complete as regards to conversion cost while the 20,000 work-in-process inventory on December 31, 2020 is 90% incomplete as to conversion cost. The total units started during the year amounted to 60,000 units. There is no spoilage during the period. It is the company policy to apply direct labor and factory overhead uniformly throughout the period while % of direct materials are added at the start of the process while the remaining direct materials are added at the end of the process. The cost of January 1, 2020 work-in-process inventory is P1M. The total manufacturing cost for the year consisted of PIM-direct material, P3M-direct labor and P4M-factory overhead. 5. What is the cost per equivalent unit of production of Direct Materials? а. 19.20 b. 16 C. 14.81 d. 11.76 6. What is the cost per equivalent unit of production of Conversion Cost, respectively? а. 130 b. 116.67 c. 89.74 d. 100

For Items 5 - 6. GANDA Inc. employs FIFO process costing system in accounting for its product. For the year ended, December 31, 2020, the following data are provided: The 30,000 work-in-process inventory on January 1, 2020 is 40% complete as regards to conversion cost while the 20,000 work-in-process inventory on December 31, 2020 is 90% incomplete as to conversion cost. The total units started during the year amounted to 60,000 units. There is no spoilage during the period. It is the company policy to apply direct labor and factory overhead uniformly throughout the period while % of direct materials are added at the start of the process while the remaining direct materials are added at the end of the process. The cost of January 1, 2020 work-in-process inventory is P1M. The total manufacturing cost for the year consisted of PIM-direct material, P3M-direct labor and P4M-factory overhead. 5. What is the cost per equivalent unit of production of Direct Materials? а. 19.20 b. 16 C. 14.81 d. 11.76 6. What is the cost per equivalent unit of production of Conversion Cost, respectively? а. 130 b. 116.67 c. 89.74 d. 100

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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shobha
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