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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