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Concept explainers
Concept Introduction:
Equivalent units of Production:
The equivalent units of production can be defined as the units, when they are multiplied with the percentage of their completion, then it is said to be complete units as per their level of completion. For example, in ending inventory, there are 2,000 units 30 % complete, the equivalent units for these 2,000 units will be = 2,000 X 30 % = 600 units. Thus, 600 units are equivalent units.
Requirement 1
To calculate:
a. Beginning inventory % of the materials and % of the conversion costs were added during April, if work-in-process inventory on March 31 was 30 % complete and 45% for conversion costs complete.
b. Ending inventory % of the materials and % of the conversion costs were added during April if work-in-process inventory on April 30 was 65 % complete and 75% for conversion costs complete.
c. Beginning inventory % of the materials and % of the conversion costs were added during April if work-in-process inventory on March 31 was 70 % complete and 80% for conversion costs complete.
d. Ending inventory % of the materials and % of the conversion costs were added during Aprilif work-in-process inventory on April 30 was 55 % complete and 80% for conversion costs complete.
Requirement 2
To compute:
Equivalent units of production for transferred in costs, direct materials, and conversion costs for both the Mixing and the Cooking Departments.
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Chapter 20 Solutions
Horngren's Accounting (11th Edition)
- Craft Made Company expects to produce 20,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below: ACTIVITIES UNIT PRODUCT FACILITY Cost LEVEL $27,000 BATCH LEVEL LEVEL LEVEL $39,000 $12,000 $141,000 20,000 units Cost Driver 2,500 labor hrs 192 set ups % of use Production of 1,350 units of an auto towing tool required 600 labor hours, 11 setups, and consumed 35% of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead on the basis of a single overhead allocation rate based on direct labor hours?arrow_forwardProblem related financial Accountingarrow_forwardGeneral accountingarrow_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
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