The cost department of Maramihan Corporation operates a process cost system using the average method. Production records showed the following data for one of the three production departments: Product received from previous department 100,000 kg; Product finished and sent to next department 71,840 kg; Product finished and remaining in this department 4,160 kg; Product unfinished in this department 24,000 kg. In this department, additional material is added to the work received from the preceding department. Three distinctly different types of materials are used at three separate stages of production in this department. Material A is added at the start of the process. Material B is added when the process is one-fourth completed. Material C is added when the process is three-fourths completed. Labor and factory overhead are incurred at a uniform rate throughout the manufacturing process in this department. Examination of the unfinished work discloses that: ¼ was 7/8 completed; ½ was ½ completed; ¼ was 1/6 completed. Compute for equivalent units of production.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The cost department of Maramihan Corporation operates a process cost system using the average method. Production records showed the following data for one of the three production departments:

Product received from previous department 100,000 kg;

Product finished and sent to next department 71,840 kg;

Product finished and remaining in this department 4,160 kg;

Product unfinished in this department 24,000 kg.

In this department, additional material is added to the work received from the preceding department. Three distinctly different types of materials are used at three separate stages of production in this department. Material A is added at the start of the process. Material B is added when the process is one-fourth completed. Material C is added when the process is three-fourths completed. Labor and factory overhead are incurred at a uniform rate throughout the manufacturing process in this department. Examination of the unfinished work discloses that: ¼ was 7/8 completed; ½ was ½ completed; ¼ was 1/6 completed. Compute for equivalent units of production. If you have multiple answers, separate your answers by A SPACE IN BETWEEN ANSWERS when necessary.

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