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 Answer the following questions and show the computations that support your answers. b) What are the costs assigned to the ending Work in Process inventory on November 30?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Answer the following questions and show the computations that support your answers.
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?
I
(Ctrl)
Rectangu
V
Transcribed Image Text: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 Answer the following questions and show the computations that support your answers. 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? I (Ctrl) Rectangu V
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