S Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and Gamma. In February, the costs to process PM-20 are $804,000 for materials and $420,000 for conversion costs. The results of the processing follow: Alpha Beta Gamma Product Alpha Beta Units Produced Required: Assign costs to Alpha, Beta, and Gamma for February using the physical quantities method. Gamma Total 27,500 22,000 5,500 Sales Value per Unit $9.60 18.00 80.00 Cost Assigned $ 0
S Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and Gamma. In February, the costs to process PM-20 are $804,000 for materials and $420,000 for conversion costs. The results of the processing follow: Alpha Beta Gamma Product Alpha Beta Units Produced Required: Assign costs to Alpha, Beta, and Gamma for February using the physical quantities method. Gamma Total 27,500 22,000 5,500 Sales Value per Unit $9.60 18.00 80.00 Cost Assigned $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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using the physical quantities method
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Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and Gamma. In February, the
costs to process PM-20 are $804,000 for materials and $420,000 for conversion costs. The results of the processing follow:
Alpha
Beta
Gamma
Product
Alpha
Beta
Units
Produced
Gamma
Total
27,500
22,000
5,500
Required:
Assign costs to Alpha, Beta, and Gamma for February using the physical quantities method.
Sales Value
per Unit
Cost Assigned
$
$9.60
18.00
80.00
0
4
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