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Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing for its monthly reports. TRU has no materials cost in the preparation of the returns. The following shows its March information: Returns in process, March 1 (30% complete) Returns started in March Returns in process, March 31 (90% complete) Labor and overhead costs for returns in process, March 1 Labor and overhead costs incurred in March Required: Calculate the following amounts for conversion costs using the FIFO method: 1. Number of equivalent units (tax returns). 2. Cost per equivalent unit 3. Cost of completed tax returns for the month of March 4. Cost of tax returns in process as of March 31 100 1,600 200 $ 2,500 $ 173,250

Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing for its monthly reports. TRU has no materials cost in the preparation of the returns. The following shows its March information: Returns in process, March 1 (30% complete) Returns started in March Returns in process, March 31 (90% complete) Labor and overhead costs for returns in process, March 1 Labor and overhead costs incurred in March Required: Calculate the following amounts for conversion costs using the FIFO method: 1. Number of equivalent units (tax returns). 2. Cost per equivalent unit 3. Cost of completed tax returns for the month of March 4. Cost of tax returns in process as of March 31 100 1,600 200 $ 2,500 $ 173,250

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing for its monthly reports. TRU has no materials cost in the preparation of the returns. The following shows its March information: Returns in process, March 1 (30% complete) Returns started in March Returns in process, March 31 (90% complete) Labor and overhead costs for returns in process, March 1 Labor and overhead costs incurred in March Required: Calculate the following amounts for conversion costs using the FIFO method: 1. Number of equivalent units (tax returns). 2. Cost per equivalent unit 3. Cost of completed tax returns for the month of March 4. Cost of tax returns in process as of March 31 100 1,600 200 $ 2,500 $ 173,250
Transcribed Image Text:Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing for its monthly reports. TRU has no materials cost in the preparation of the returns. The following shows its March information: Returns in process, March 1 (30% complete) Returns started in March Returns in process, March 31 (90% complete) Labor and overhead costs for returns in process, March 1 Labor and overhead costs incurred in March Required: Calculate the following amounts for conversion costs using the FIFO method: 1. Number of equivalent units (tax returns). 2. Cost per equivalent unit 3. Cost of completed tax returns for the month of March 4. Cost of tax returns in process as of March 31 100 1,600 200 $ 2,500 $ 173,250
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