Chapter 3, Problem 6PSB

To determine

(1)

Concept introduction:

Equivalent units are those units which are finished from direct materials, labour and other overhead costs at a particular percent to know the completed manufacturing during the period.

To calculate:

Number of units transferred to finished goods.

To determine

(2)

Concept introduction:

Equivalent units are those units which are finished from direct materials, labour and other overhead costs at a particular percent to know the completed manufacturing during the period.

FIFO method- is a system of stock evaluation is a cost flow statement that the first merchandise purchased are also the initial good sold. In most corporate, this assumption directly matches the actual flow of goods and so is considered the most in theory correct stock valuation method.

To calculate:

No. of equivalent units with respect to direct material (DM) and conversion for the month of May using FIFO method.

To determine

(3)

Concept introduction:

Per unit cost of production is represented by cost per equivalent production. It is determined by dividing total cost with equivalent production unit.

To calculate:

Cost per equivalent unit in respect to direct material and conversion.

To determine

(4)

Concept introduction:

Per unit cost of production is represented by cost per equivalent production. It is determined by dividing total cost with equivalent production unit.

To Allocate:

May’s cost to the units transferred to completed goods and closing work in process stock using FIFO method.