Concept explainers
1. Determine Number of Units Transferred to Assembly Department.
Concept Introduction:
Process costing is mainly used in manufacturing units, wherein bulk units of standard goods are produced at a time in lots. It is used for each department of production to determine the costs assigned to units transferred out and ending work in process.
Requirement 1
To Determine Number of Units Transferred to Assembly
No of units transferred to Assembly=187500 Units
Requirement 2
To Determine:
2. Equivalent Units with respect to Materials and Conversion Using FIFO Method.
Equivalent Units with respect to Materials= 195750 Units
Equivalent Units with respect to Conversion Cost= 182750 Units
Requirement 3
To Determine:
Direct Material Cost and Conversion Cost per Equivalent Unit.
Direct Material Cost per unit= $2.58 per unit
Conversion Cost per unit=$2.17 per unit
Concept Introduction:
Process Costing:
Process costing is mainly used in manufacturing units, wherein bulk units of standard goods are produced at a time in lots. It is used for each department of production to determine the costs assigned to units transferred out and ending work in process.
Requirement 4
To Determine:
Assign Cost to Units Transferred out and Ending Work in process.
Total Cost of Units Transferred out= $781451
Total Cost of Ending Work in Process=$101578

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Chapter 20 Solutions
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