[The following information applies to the questions displayed below.] Pacific Ink had beginning work-in- process inventory of $985,960 on October 1. Of this amount, $412,500 was the cost of direct materials and $573,460 was the cost of conversion. The 60,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October, 126,000 units were transferred out and 42,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,186,000 for direct materials and $3,943,680 for conversion. Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method.
[The following information applies to the questions displayed below.] Pacific Ink had beginning work-in- process inventory of $985,960 on October 1. Of this amount, $412,500 was the cost of direct materials and $573,460 was the cost of conversion. The 60,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October, 126,000 units were transferred out and 42,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,186,000 for direct materials and $3,943,680 for conversion. Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method.
[The following information applies to the questions displayed below.] Pacific Ink had beginning work-in- process inventory of $985,960 on October 1. Of this amount, $412,500 was the cost of direct materials and $573,460 was the cost of conversion. The 60,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October, 126,000 units were transferred out and 42,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,186,000 for direct materials and $3,943,680 for conversion. Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method.
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Transcribed Image Text:[The following information applies to the questions
displayed below.] Pacific Ink had beginning work-in-
process inventory of $985,960 on October 1. Of this
amount, $412,500 was the cost of direct materials and
$573,460 was the cost of conversion. The 60,000 units
in the beginning inventory were 30 percent complete
with respect to both direct materials and conversion
costs. During October, 126,000 units were transferred
out and 42,000 remained in ending inventory. The units
in ending inventory were 80 percent complete with
respect to direct materials and 40 percent complete
with respect to conversion costs. Costs incurred during
the period amounted to $3,186,000 for direct materials
and $3,943,680 for conversion. Required: a. Compute
the equivalent units for the materials and conversion
cost calculations. b. Compute the cost per equivalent
unit for direct materials and for conversion costs using
the FIFO method.
Definition Definition Structural system an enterprise uses to collect, store, report, retrieve, and process financial data. Accounting information systems are used by business analysts, auditors, accountants, and consultants for accurate and efficient access to financial data.
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![[The following information applies to the questions
displayed below.] Pacific Ink had beginning work-in-
process inventory of $985,960 on October 1. Of this
amount, $412,500 was the cost of direct materials and
$573,460 was the cost of conversion. The 60,000 units
in the beginning inventory were 30 percent complete
with respect to both direct materials and conversion
costs. During October, 126,000 units were transferred
out and 42,000 remained in ending inventory. The units
in ending inventory were 80 percent complete with
respect to direct materials and 40 percent complete
with respect to conversion costs. Costs incurred during
the period amounted to $3,186,000 for direct materials
and $3,943,680 for conversion. Required: a. Compute
the equivalent units for the materials and conversion
cost calculations. b. Compute the cost per equivalent
unit for direct materials and for conversion costs using
the FIFO method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6591c143-961c-4ce9-a305-9f82035c2592%2F93a926a3-9fcb-42b8-ab07-c02ea6e2a486%2Ff8dwc7_processed.jpeg&w=3840&q=75)
