Sonic Marine produces sonar fishing equipment. The company's F5-300 Sonar units are produced in a single manufacturing department. All direct material used in the production of these units is added at the beginning of the process. Conversion costs (labor and overhead) are incurred evenly thereafter as each unit is assembled, adjusted, and tested. The company uses process costing and has provided the following information for F5-300 production in January and February: Number of units in beginning work in process inventory Number of units started during the month Total number of units transferred to finished goods January 0 500 350 February 150 Equivalent Units Produced January February Direct materials Labor and overhead 600 450 The units remaining in work in process at the end of January were approximately 70 percent complete with respect to their conversion costs. During the month of February, all of the beginning work in process units were completed and the units remaining in work in process at the end of the month were approximately 75 percent complete with respect to their conversion costs. Required: a. For the month of January, calculate the equivalent units of input resources used for direct materials and conversion. b. For the month of February, calculate the equivalent units of input resources used for direct materials and conversion. Note: For "Labor and overhead", do not round intermediate calculations and round up your final answer to the nearest whole unit.
Sonic Marine produces sonar fishing equipment. The company's F5-300 Sonar units are produced in a single manufacturing department. All direct material used in the production of these units is added at the beginning of the process. Conversion costs (labor and overhead) are incurred evenly thereafter as each unit is assembled, adjusted, and tested. The company uses process costing and has provided the following information for F5-300 production in January and February: Number of units in beginning work in process inventory Number of units started during the month Total number of units transferred to finished goods January 0 500 350 February 150 Equivalent Units Produced January February Direct materials Labor and overhead 600 450 The units remaining in work in process at the end of January were approximately 70 percent complete with respect to their conversion costs. During the month of February, all of the beginning work in process units were completed and the units remaining in work in process at the end of the month were approximately 75 percent complete with respect to their conversion costs. Required: a. For the month of January, calculate the equivalent units of input resources used for direct materials and conversion. b. For the month of February, calculate the equivalent units of input resources used for direct materials and conversion. Note: For "Labor and overhead", do not round intermediate calculations and round up your final answer to the nearest whole unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Sonic Marine produces sonar fishing equipment. The company's F5-300 Sonar units are produced in a single manufacturing
department. All direct material used in the production of these units is added at the beginning of the process. Conversion costs (labor
and overhead) are incurred evenly thereafter as each unit is assembled, adjusted, and tested. The company uses process costing and
has provided the following information for F5-300 production in January and February:
Number of units in beginning work in process inventory
Number of units started during the month
Total number of units transferred to finished goods
January
0
500
350
February
150
Equivalent Units Produced January February
Direct materials
Labor and overhead
600
450
The units remaining in work in process at the end of January were approximately 70 percent complete with respect to their conversion
costs. During the month of February, all of the beginning work in process units were completed and the units remaining in work in
process at the end of the month were approximately 75 percent complete with respect to their conversion costs.
Required:
a. For the month of January, calculate the equivalent units of input resources used for direct materials and conversion.
b. For the month of February, calculate the equivalent units of input resources used for direct materials and conversion.
Note: For "Labor and overhead", do not round intermediate calculations and round up your final answer to the nearest whole
unit.
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