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. Problem 10-8: Equivalent Production and Computation of CostThe Nature Medicine Co. manufactures an all purpose tablet. Four directmaterials are put into production in Department A. Department B placesthe units received from Department A into quick-dissolving tablets. Rawmaterials (all direct) are placed into production in Department A as fol-lows:Raw materials 101 (aspirin): Beginning of processRaw materials 102 (caffeine): When units are 40% completeRaw materials 103 (decongestant): When units are 60% completeRaw materials 104 (muscle relaxer): When units are 95% complete 394Chapter 10Problem 10-8- ContinuedJuly Data, Department A:300,000250,000Units started in processUnits transferred outEnding units in process (30% are 45% complete,35% are 50% complete, 15% are 65% complete,20% are 98% complete)50,000Cost incurred:Direct materials:101 P 6,000.003,000.00103 9,362.50104 13,000.00102Conversion117,763.50Required:Compute the units of equivalent production for materials and con-version costs.1.Compute the cost of ending work in process inventory.2.

Equivalent unit of production: It is a term that is applied to the WIP inventory(Work in process)…

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.

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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Which of the following is a characteristic of a process cost accounting system? A. Material, Labor, and Overheads are accumulated by orders. B. Companies use this system if they process custom orders. C. Only Closing stock of work in process is restated in terms of completed units. D. Opening and Closing stock of work in process are related in terms of completed units.
Provide a description of how the job order costing and process costing methods are applied to determine accurate cost data.
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Process costing is an effective method to identify resource and logistics costs. Please respond to the following: Discuss the specific steps you would take to design a process costing system that effectively identifies resource and logistics costs of a manufactured product.
Under process costing, the costs incurred by each department are reported in which of the following? Group of answer choices A job cost sheet The Cost of Goods Sold account The Finished Goods Inventory account A production cost report
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