The assembly division of Quality Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process, beginning Started during current period To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period Physical Units Data table Beginning work in process (May 1)a Started in May 2020 Physical Units (Watches) 100 Print 510 450 160 Completed during May 2020 Ending work in process (May 31) Total costs added during May 2020 aDegree of completion: direct materials, 80%; conversion costs, 35%. Degree of completion: direct materials, 80%; conversion costs, 40%. Direct Materials $459,888 Done $3,237,000 Conversion Costs $142,570 $1,916,000
The assembly division of Quality Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process, beginning Started during current period To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period Physical Units Data table Beginning work in process (May 1)a Started in May 2020 Physical Units (Watches) 100 Print 510 450 160 Completed during May 2020 Ending work in process (May 31) Total costs added during May 2020 aDegree of completion: direct materials, 80%; conversion costs, 35%. Degree of completion: direct materials, 80%; conversion costs, 40%. Direct Materials $459,888 Done $3,237,000 Conversion Costs $142,570 $1,916,000
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 16E: Cost of production report The debits to Work in ProcessRoasting Department for Morning Brew Coffee...
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:The assembly division of Quality Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020:
(Click the icon to view the data.)
Requirement
Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
Enter the physical units in first, then calculate the equivalent units.
Flow of Production
Work in process, beginning
Started during current period
To account for
Completed and transferred out during current period:
From beginning work in process
Started and completed
Work in process, ending
Accounted for
Equivalent unts of work done in current period
Physical
Units
Data table
Beginning work in process (May 1)ª
Started in May 2020
Physical Units
(Watches)
100
510
450
160
Print
Completed during May 2020
Ending work in process (May 31)b
Total costs added during May 2020
a Degree of completion: direct materials, 80%; conversion costs, 35%.
Degree of completion: direct materials, 80%; conversion costs, 40%.
Direct Conversion
Materials Costs
$459,888 $142,570
Done
$3,237,000
$1,916,000
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