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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 14E: Cost per equivalent unit The following information concerns production in the Forging Department for...
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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
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c5ae153-5ad6-47a9-8525-15d3a5b7eb2b%2Fba513060-4e2b-4546-b22b-8eec9c2c4ec1%2Fvngtbyt_processed.jpeg&w=3840&q=75)
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
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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