Homework Help is Here – Start Your Trial Now!
Business
Accounting
st Company uses a normal, process costing system to determine product cost. The company es the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning rk-in-process. e product passes through two departments: Department 1 and Department 2. In Department all direct materials are added at the beginning of the process. The following information is ailable for Department 2 in July. Work-in-process, July 1 Units Costs Direct materials Conversion cost Transferred-in cost uly activity Units Transferred in Completed and transferred out Costs added Direct materials Conversion cost Transferred-in-cost ercentage of completion Work-in-process, July 1 Work-in-process, July 31 5,000 units $25,000 16,000 20,000 50,000 units 45,000 units $400,000 184,000 200,000 60% 40%

st Company uses a normal, process costing system to determine product cost. The company es the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning rk-in-process. e product passes through two departments: Department 1 and Department 2. In Department all direct materials are added at the beginning of the process. The following information is ailable for Department 2 in July. Work-in-process, July 1 Units Costs Direct materials Conversion cost Transferred-in cost uly activity Units Transferred in Completed and transferred out Costs added Direct materials Conversion cost Transferred-in-cost ercentage of completion Work-in-process, July 1 Work-in-process, July 31 5,000 units $25,000 16,000 20,000 50,000 units 45,000 units $400,000 184,000 200,000 60% 40%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please help me to solve this problem 

Test Company uses a normal, process costing system to determine product cost. The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process. The product passes through two departments: Department 1 and Department 2. In Department 2, all direct materials are added at the beginning of the process. The following information is available for Department 2 in July. Work-in-process, July 1 Units Costs Direct materials Conversion cost Transferred-in cost July activity Units Transferred in Completed and transferred out Costs added Direct materials Conversion cost Transferred-in-cost Percentage of completion Work-in-process, July 1 Work-in-process, July 31 5,000 units $25,000 16,000 20,000 50,000 units 45,000 units $400,000 184,000 200,000 60% 40% Determine the cost per equivalent unit with respect to conversion cost for July. Note: Give your answer using dollar signs and carry your answer to the nearest cent.
Transcribed Image Text:Test Company uses a normal, process costing system to determine product cost. The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process. The product passes through two departments: Department 1 and Department 2. In Department 2, all direct materials are added at the beginning of the process. The following information is available for Department 2 in July. Work-in-process, July 1 Units Costs Direct materials Conversion cost Transferred-in cost July activity Units Transferred in Completed and transferred out Costs added Direct materials Conversion cost Transferred-in-cost Percentage of completion Work-in-process, July 1 Work-in-process, July 31 5,000 units $25,000 16,000 20,000 50,000 units 45,000 units $400,000 184,000 200,000 60% 40% Determine the cost per equivalent unit with respect to conversion cost for July. Note: Give your answer using dollar signs and carry your answer to the nearest cent.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Value Chain Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS