Samantha's Office Supplies manufactures desk organizers in its Processing materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place at the end of the production. Spoiled units generally constitute 8% of the good units. Data provided for March 2021 are as follows: Physical Direct Conversion Units Materials Costs 53,000 80% 50% Work in process, beginning (units) Started during current period Good units completed and transferred out during current period: Normal spoilage as percentage of good units Work in process, ending (given) Cost of Work in process, beginning Costs added in current period 190,000 200,000 8.0% 21,000 90% 30% $290,000 $100,000 $412,880 $270,412 Degree of completion of normal spoilage Degree of completion of abnormal spoilage 100% 100% 100% 100% Required Using the FIFO method of process costing: b) Compute the equivalent cost per unit for direct material and conversion cost respectively. c) Compute the costs assigned to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.

Samantha's Office Supplies manufactures desk organizers in its Processing materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place at the end of the production. Spoiled units generally constitute 8% of the good units. Data provided for March 2021 are as follows: Physical Direct Conversion Units Materials Costs 53,000 80% 50% Work in process, beginning (units) Started during current period Good units completed and transferred out during current period: Normal spoilage as percentage of good units Work in process, ending (given) Cost of Work in process, beginning Costs added in current period 190,000 200,000 8.0% 21,000 90% 30% $290,000 $100,000 $412,880 $270,412 Degree of completion of normal spoilage Degree of completion of abnormal spoilage 100% 100% 100% 100% Required Using the FIFO method of process costing: b) Compute the equivalent cost per unit for direct material and conversion cost respectively. c) Compute the costs assigned to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.

Name: Question 4Samantha's Office Supplies manufactures desk organizers in
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Description: Question 4Samantha's Office Supplies manufactures desk organizers in its Processing Department. Directmaterials are included at the inception of the production cycle and must be bundled in singlekits for each unit. Conversion costs are incurred even

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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