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 31 200 2,100 400 $ 5,000 $ 209,000
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 31 200 2,100 400 $ 5,000 $ 209,000
Chapter1: Financial Statements And Business Decisions
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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
200
2,100
400
$ 5,000
$ 209,000
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