Stage of Completion Materials Units Conversion Cost Beginning work-in-process Units started during the period Units completed and transferred Ending work-in-process 18,000 60% 20% 100,000 94,000 24,000 80% 40% Costs follows: Costs Incurred Materials Direct Labor Factory Overhead $ 22,500 $ 72,000 $ 17,640 Beginning work-in-process Units started during the period 468,000 182,880 391,160

Stage of Completion Materials Units Conversion Cost Beginning work-in-process Units started during the period Units completed and transferred Ending work-in-process 18,000 60% 20% 100,000 94,000 24,000 80% 40% Costs follows: Costs Incurred Materials Direct Labor Factory Overhead $ 22,500 $ 72,000 $ 17,640 Beginning work-in-process Units started during the period 468,000 182,880 391,160

Name: 1. Using weighted average method, what is the equivalent production in
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Description: 1. Using weighted average method, what is the equivalent production in units of Materials? 2. Using weighted average method, what is the equivalent-unit material cost for the period? Stage of CompletionUnitsMaterialsConversion CostBeginning work-in-p

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

1. Using weighted average method, what is the equivalent production in units of Materials?

2. Using weighted average method, what is the equivalent-unit material cost for the period?

Stage of Completion
Units
Materials
Conversion Cost
Beginning work-in-process
Units started during the period
Units completed and transferred
Ending work-in-process
18,000
60%
20%
100,000
94,000
24,000
80%
40%
Costs follows:
Costs Incurred
Beginning work-in-process
Units started during the period
Materials Direct Labor Factory Overhead
$ 22,500
182,880
$ 72,000
468,000
$ 17,640
391,160

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