![Connect Access Card For Fundamental Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781260158526/9781260158526_smallCoverImage.gif)
Requirement 1:
To compute:
The roasting department's equivalent units of production for materials for the month using FIFO method.
Requirement 1:
![Check Mark](/static/check-mark.png)
Answer to Problem 21QS
Solution:
Materials | |
Equivalent Units | 18,000 units |
Explanation of Solution
The equivalent units of production for Materials can be calculated as under −
First, units added and completed 100 % from the process will be calculated.
Given,
- Units transferred out = 17,000 units ( 2,000 units + 18,000 units − 3,000 units)
- Beginning inventory units = 2,000 units
Out of total units transferred, 15,000 units were added and completed and transferred out during the process.
Equivalent
Equivalent units of production -FIFO | |
Direct Materials | |
Units to complete - Beginning Inventory | |
Direct Materials (2,000 X 30%) | 600 |
Units completed and transferred out | 15,000 |
Units completed - Ending Inventory | |
Direct Materials (3,000 X 80%) | 2,400 |
Equivalent units of production | 18,000 |
The above calculations can be explained as under −
For beginning inventory −
Given,
- Units in beginning inventory = 2,000 units
- For direct material completed percentage = 70 %
For units added, completed and transferred out −
15,000 units calculated as above
For ending inventory −
Given,
- Units in ending inventory = 3,000 units
- For direct material completed percentage = 80 %
Equivalent units for ending inventory for materials −
Total equivalent units for production for materials will be calculated as under −
Given,
For materials −
- Beginning equivalent units = 600 units
- Completed and transferred = 15,000 units
- Ending equivalent units = 2,400 units
Thus, the roasting department's equivalent units of production for materials for the month using FIFO method have been calculated.
Requirement 2:
To compute:
The roasting department's cost per equivalent unit of production for materials for the month using FIFO method.
Requirement 2:
![Check Mark](/static/check-mark.png)
Answer to Problem 21QS
Solution:
The roasting department's cost per equivalent unit of production for materials for the month using FIFO method = $ 1.55 per unit
Explanation of Solution
The cost per equivalent unit for materials is calculated as under −
Cost per Equivalent unit - FIFO | |
Direct Materials | |
Costs incurred during the period | 27,900 |
Equivalent units of production | 18,000 |
Cost per Equivalent unit | 1.55 |
Given,
For materials −
- Costs incurred during the period = $ 27,900
- Equivalent units of production = 18,000 units
Thus, the roasting department's cost per equivalent unit of production for materials for the month using FIFO method has been calculated.
Want to see more full solutions like this?
Chapter 20 Solutions
Connect Access Card For Fundamental Accounting Principles
- Anti-Pandemic Pharma Co. Ltd. reports the following information in its income statement: Sales = $5,250,000; Costs = $2, 173,000; Other expenses = $187,400; Depreciation expense = $79,000; Interest expense= $53,555; Taxes $76,000; Dividends $69,000. $136,700 worth of new shares were also issued during the year and long-term debt worth $65,300 was redeemed. a) Compute the cash flow from assets b) Compute the net change in working capital (325 marks)arrow_forwardQS 15-18 (Algo) Computing and recording over- or underapplied overhead LO P4 A company applies overhead at a rate of 170% of direct labor cost. Actual overhead cost for the current period is $1,081,900, and direct labor cost is $627,000. 1. Compute the under- or overapplied overhead. 2. Prepare the journal entry to close over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the under- or overapplied overhead.arrow_forwardQuestion 6 During 2019, Bitsincoins Corporation had EBIT of $100,000, a change in net fixed assets of $400,000, an increase in net current assets of $100,000, an increase in spontaneous current liabilities of $400,000, a depreciation expense of $50,000, and a tax rate of 30%. Based on this information, what is Bitsincoin's free cash flow? (3 marks)arrow_forward
- Question 4 Waterfront Inc. wishes to borrow on a short-term basis without reducing its current ratio below 1.25. At present its current assets and current liabilities are $1,600 and $1,000 respectively. How much can Waterfront Inc. borrow? (5 marks)arrow_forwarddiscus extensivery source of bussines finances requaments not less than 4 pages font size 12 spacing 1.5 roman times references must be less thhan 5arrow_forwardCalculate stricklers cash conversion cycle?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)