Problem 10-8- Continued July Data, Department A: Units started in process Units transferred out 300,000 250,000 Ending units in process (30% are 45% complete, 35% are 50% complete, 15% are 65% complete, 20% are 98% complete) 50,000 Cost incurred: Direct materials: 101 P 6,000.00 3,000.00 9,362.50 102 103 104 13,000.00 Conversion 117,763.50 Required: 1. Compute the units of equivalent production for materials and ce version costs. 2. Compute the cost of ending work in process inventory.
Problem 10-8- Continued July Data, Department A: Units started in process Units transferred out 300,000 250,000 Ending units in process (30% are 45% complete, 35% are 50% complete, 15% are 65% complete, 20% are 98% complete) 50,000 Cost incurred: Direct materials: 101 P 6,000.00 3,000.00 9,362.50 102 103 104 13,000.00 Conversion 117,763.50 Required: 1. Compute the units of equivalent production for materials and ce version costs. 2. Compute the cost of ending work in process inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please refer the problem from the attached images below.
Required:
- Compute the units of equivalent production for materials and conversion costs.
- Compute the cost of ending work in process inventory.
- Prepare a cost of production report.
Transcribed Image Text:Problem 10-8: Equivalent Production and Computation of Cost
The Nature Medicine Co. manufactures an all purpose tablet. Four direct
materials are put into production in Department A. Department B places
the units received from Department A into quick-dissolving tablets. Raw
materials (all direct) are placed into production in Department A as fol-
lows:
Raw materials 101 (aspirin): Beginning of process
Raw materials 102 (caffeine): When units are 40% complete
Raw materials 103 (decongestant): When units are 60% complete
Raw materials 104 (muscle relaxer): When units are 95% complete
Transcribed Image Text:394
Chapter 10
Problem 10-8- Continued
July Data, Department A:
300,000
250,000
Units started in process
Units transferred out
Ending units in process (30% are 45% complete,
35% are 50% complete, 15% are 65% complete,
20% are 98% complete)
50,000
Cost incurred:
Direct materials:
101 P 6,000.00
3,000.00
103 9,362.50
104 13,000.00
102
Conversion
117,763.50
Required:
Compute the units of equivalent production for materials and con-
version costs.
1.
Compute the cost of ending work in process inventory.
2.
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