Required information [The following information applies to the questions displayed below.) Timing Technology, Incorporated, manufactures timing devices. During 20x1, 2,600,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 430,000 units in work in process. These units were 52 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 1,066,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information: Work in process, January 1, 20x1 (81% complete as to conversion) Units started in production Direct-material costs Direct-labor costs Units Total costs to account for Equivalent units Costs per equivalent unt 420,000 2,610,000 Direct Material Direct Labor (Costs) (Costs) $ 332,000 $ 326,400 $8,455,000 3. Complete the following schedule as of December 31, 20x1, to compute the costs per equivalent unit for material and conversion. Note: Round "Cost per Equivalent Unit" to 2 decimal places. Materials $6,873,780 Conversion Total
Required information [The following information applies to the questions displayed below.) Timing Technology, Incorporated, manufactures timing devices. During 20x1, 2,600,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 430,000 units in work in process. These units were 52 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 1,066,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information: Work in process, January 1, 20x1 (81% complete as to conversion) Units started in production Direct-material costs Direct-labor costs Units Total costs to account for Equivalent units Costs per equivalent unt 420,000 2,610,000 Direct Material Direct Labor (Costs) (Costs) $ 332,000 $ 326,400 $8,455,000 3. Complete the following schedule as of December 31, 20x1, to compute the costs per equivalent unit for material and conversion. Note: Round "Cost per Equivalent Unit" to 2 decimal places. Materials $6,873,780 Conversion Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
Timing Technology, Incorporated, manufactures timing devices. During 20x1, 2,600,000 units were completed and
transferred to finished-goods inventory. On December 31, 20x1, there were 430,000 units in work in process. These units
were 52 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory
consisted of 1,066,000 units. Materials are added to production at the beginning of the manufacturing process, and
overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods
inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information:
Work in process, January 1, 20x1
(81% complete as to conversion)
Units started in production
Direct-material costs
Direct-labor costs
Units
420,000
2,610,000
Total costs to account for
Equivalent units
Costs per equivalent unt
Direct Material Direct Labor
(Costs)
(Costs)
$ 332,000
$ 326,400
$ 8,455,000
3. Complete the following schedule as of December 31, 20x1, to compute the costs per equivalent unit for material and conversion.
Note: Round "Cost per Equivalent Unit" to 2 decimal places.
Materials
$ 6,873,780
Conversion
Total
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