Monga manufactures cell phones. The conversion costs to produce cell phones for November are added evenly throughout the process in the Assembly Department. The company uses the weighted-average method. For each of the following separate assumptions, calculate the equivalent units of production for conversion costs in the ending Work-in-Process Inventory for the Assembly Department: 1. 6,000 cell phones were 75% complete 2. 26,000 cell phones were 25% complete First, determine the formula for calculating equivalent units of production. Equivalent units of production Assumption 1. 6,000 cell phones were 75% complete. The equivalent units for conversion costs is Assumption 2. 26,000 cell phones were 25% complete The equivalent units for conversion costs is

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter6: Process Costing
Section: Chapter Questions
Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...
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Monga manufactures cell phones. The conversion costs to produce cell phones for November are added
evenly throughout the process in the Assembly Department. The company uses the weighted-average
method. For each of the following separate assumptions, calculate the equivalent units of production for
conversion costs in the ending Work-in-Process Inventory for the Assembly Department:
1. 6,000 cell phones were 75% complete
2. 26,000 cell phones were 25% complete
First, determine the formula for calculating equivalent units of production.
Equivalent units of production
Assumption 1. 6,000 cell phones were 75% complete.
The equivalent units for conversion costs is
Assumption 2. 26,000 cell phones were 25% complete
The equivalent units for conversion costs is
Transcribed Image Text:Monga manufactures cell phones. The conversion costs to produce cell phones for November are added evenly throughout the process in the Assembly Department. The company uses the weighted-average method. For each of the following separate assumptions, calculate the equivalent units of production for conversion costs in the ending Work-in-Process Inventory for the Assembly Department: 1. 6,000 cell phones were 75% complete 2. 26,000 cell phones were 25% complete First, determine the formula for calculating equivalent units of production. Equivalent units of production Assumption 1. 6,000 cell phones were 75% complete. The equivalent units for conversion costs is Assumption 2. 26,000 cell phones were 25% complete The equivalent units for conversion costs is
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