The Polishing Department of Major Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process. Production: Beginning inventory 1,560 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 41,500; ending inventory of 7,800 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $20,300 of materials and $8,596 of conversion costs; materials costs added in Polishing during the month, $182,082; labor and overhead applied in Polishing during the month, $126,100 and $258,140, respectively. Compute the equivalent units of production for materials and conversion costs for the month of September. Materials Conversion Costs The equivalent units of production enter a number of units enter a number of units Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion Costs Unit costs $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places Determine the costs to be assigned to the units transferred out and in process. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) Transferred out $enter a dollar amount rounded to 0 decimal places Ending work in process $enter a dollar amount rounded to 0 decimal places
The Polishing Department of Major Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process. Production: Beginning inventory 1,560 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 41,500; ending inventory of 7,800 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $20,300 of materials and $8,596 of conversion costs; materials costs added in Polishing during the month, $182,082; labor and overhead applied in Polishing during the month, $126,100 and $258,140, respectively. Compute the equivalent units of production for materials and conversion costs for the month of September. Materials Conversion Costs The equivalent units of production enter a number of units enter a number of units Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion Costs Unit costs $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places Determine the costs to be assigned to the units transferred out and in process. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) Transferred out $enter a dollar amount rounded to 0 decimal places Ending work in process $enter a dollar amount rounded to 0 decimal places
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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The Polishing Department of Major Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.
Production: Beginning inventory 1,560 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 41,500; ending inventory of 7,800 units 10% complete as to conversion costs.
Manufacturing costs : Beginning inventory costs, comprised of $20,300 of materials and $8,596 of conversion costs; materials costs added in Polishing during the month, $182,082; labor and overhead applied in Polishing during the month, $126,100 and $258,140, respectively.
Production: Beginning inventory 1,560 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 41,500; ending inventory of 7,800 units 10% complete as to conversion costs.
Compute the equivalent units of production for materials and conversion costs for the month of September.
|
Materials
|
Conversion Costs
|
|||
|---|---|---|---|---|
| The equivalent units of production |
enter a number of units
|
enter a number of units
|
Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25.)
|
Materials
|
Conversion Costs
|
|||
|---|---|---|---|---|
| Unit costs |
$enter a dollar amount rounded to 2 decimal places
|
$enter a dollar amount rounded to 2 decimal places
|
Determine the costs to be assigned to the units transferred out and in process. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)
| Transferred out |
$enter a dollar amount rounded to 0 decimal places
|
|
|---|---|---|
| Ending work in process |
$enter a dollar amount rounded to 0 decimal places
|
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