[The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Percent Complete 70% Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 62,000 332,000 310,000 84,000 The production department had the cost information below. Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for $ 126,862 32,560 817,858 689,000 90% $ 159,422 1,506,858 $ 1,666,280 Conversion Percent Complete 30% 40% (a) Calculate the costs per equivalent unit of production for both direct materials and conversion for the department. Note: Round "Cost per EUP" to 2 decimal places. (b) Assign costs to the department's output-specifically, to the units transferred out and to the units that remain in work in process at period-end. Use the FIFO method.
[The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Percent Complete 70% Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 62,000 332,000 310,000 84,000 The production department had the cost information below. Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for $ 126,862 32,560 817,858 689,000 90% $ 159,422 1,506,858 $ 1,666,280 Conversion Percent Complete 30% 40% (a) Calculate the costs per equivalent unit of production for both direct materials and conversion for the department. Note: Round "Cost per EUP" to 2 decimal places. (b) Assign costs to the department's output-specifically, to the units transferred out and to the units that remain in work in process at period-end. Use the FIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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![Required information
[The following information applies to the questions displayed below.]
The first production department of Stone Incorporated reports the following for April.
Beginning work in process inventory
Units started this period
Completed and transferred out
Ending work in process inventory
The production department had the cost information below.
Beginning work in process inventory
Direct materials
Units
62,000
332,000
310,000
84,000
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
$ 126,862
32,560
817,858
689,000
Direct
Materials
Percent
Complete
70%
90%
$ 159,422
1,506,858
$1,666,280
Conversion
Percent
Complete
30%
40%
(a) Calculate the costs per equivalent unit of production for both direct materials and conversion for the department.
Note: Round "Cost per EUP" to 2 decimal places.
(b) Assign costs to the department's output-specifically, to the units transferred out and to the units that remain in work in process at
period-end. Use the FIFO method.
Note: Round "Cost per EUP" to 2 decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6fe1d6f-ad6c-447d-97ec-6e075db19ee4%2Fe3eeea67-f1ef-4eaf-8b1a-7c8736535adc%2Fyu4cvk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The first production department of Stone Incorporated reports the following for April.
Beginning work in process inventory
Units started this period
Completed and transferred out
Ending work in process inventory
The production department had the cost information below.
Beginning work in process inventory
Direct materials
Units
62,000
332,000
310,000
84,000
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
$ 126,862
32,560
817,858
689,000
Direct
Materials
Percent
Complete
70%
90%
$ 159,422
1,506,858
$1,666,280
Conversion
Percent
Complete
30%
40%
(a) Calculate the costs per equivalent unit of production for both direct materials and conversion for the department.
Note: Round "Cost per EUP" to 2 decimal places.
(b) Assign costs to the department's output-specifically, to the units transferred out and to the units that remain in work in process at
period-end. Use the FIFO method.
Note: Round "Cost per EUP" to 2 decimal places.
Transcribed Image Text:Required a.
Cost per equivalent unit of production: FIFO method
+ Equivalent units of production
Cost per equivalent unit of production (rounded to 2 decimals)
Required b.
Cost assignment-FIFO
Beginning work in process
To complete beginning work in process
Direct materials
Conversion
Started and completed
Direct materials
Conversion
Completed and transferred out
Ending work in process
Direct materials
Conversion
Total costs accounted for
EUP
EUP
EUP
Direct Materials Conversion
Cost per EUP
Cost per EUP
Cost per EUP
Total cost
Total cost
Total cost
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