Solve all the parts within 30 mins. Taco Ranch uses a process cost system and the FIFOcost flow assumption. Production begins in theCrafting Department where direct materials areadded at the beginning of the process andconversion costs are incurred uniformly throughoutthe process. On November 1, the beginning Work inProcess inventory consisted of 10,000 units whichwere 60% complete and had a cost of $190,000,$100,000 of which were direct materials costs. DuringNovember, the following occurred:Direct materialsadded$225,000Conversion costsincurred$45,000Units completed and transferred out inNovember40,000Units in ending Work in Process inventoryNovember 30 (20% complete) 25,000InstructionsAnswer the following questions and show thecomputations that support your answers.a) What are the equivalent units of productionfor direct materials and conversion costs in theCrafting Department for the month of November?b) What are the costs assigned to the endingWork in Process inventory on November 30?c) What are the costs assigned to unitscompleted and transferred out during November?

The cost per equivalent unit for materials is the sum of the material costs for the starting…

Taco Ranch uses a process cost system and the FIFO cost flow assumption. Production begins in the Crafting Department where direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On November 1, the beginning Work in

Taco Ranch uses a process cost system and the FIFO cost flow assumption. Production begins in the Crafting Department where direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On November 1, the beginning Work in

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

100%

Solve all the parts within 30 mins.

Taco Ranch uses a process cost system and the FIFO
cost flow assumption. Production begins in the
Crafting Department where direct materials are
added at the beginning of the process and
conversion costs are incurred uniformly throughout
the process. On November 1, the beginning Work in
Process inventory consisted of 10,000 units which
were 60% complete and had a cost of $190,000,
$100,000 of which were direct materials costs. During
November, the following occurred:
Direct materials
added
$225,000
Conversion costs
incurred
$45,000
Units completed and transferred out in
November
40,000
Units in ending Work in Process inventory
November 30 (20% complete) 25,000
Instructions
Answer the following questions and show the
computations that support your answers.
a) What are the equivalent units of production
for direct materials and conversion costs in the
Crafting Department for the month of November?
b) What are the costs assigned to the ending
Work in Process inventory on November 30?
c) What are the costs assigned to units
completed and transferred out during November?

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