Arrow Company processes a food seasoning powder through its Compounding and Packaging departments. In the Compounding Department,

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Arrow Company processes a food seasoning powder through its Compounding and Packaging departments. In the Compounding Department, direct materials are added at the beginning of the process, and direct labor and manufacturing overhead are incurred evenly throughout the process. Arrow uses the FIFO method. August 2016 costs in the Compounding Department can be summarized as follows:

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At August 31, 3,000 units were in process, 30% complete with respect to conversion costs.
Required Calculate the following for the Compounding Department:

a. Equivalent units during August.

b. Costs per equivalent unit.

c. Total cost of units transferred to finished goods inventory.

d. Inventory cost at August 31.

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Managerial Accounting For Undergraduates

ISBN: 9781618531124

1st Edition

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

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