The following computations are for Creite’s, Inc.’s cost of production report. The 200 units in beginning inventory have a total cost of $500.

Required:

a. Explain why you know that this is not the first processing department.
bh. (1) Identify the costing method (FIFO or weighted average) being used.
(2) Give two reasons why you know this costing method is being used.

c. Why were 200 units deducted in computing the equivalent units for the preceding department cost?

d. Explain before what stage of operations material enters this department.

e. Explain why you could not work this problem on the data given using average costing.

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EU, preceding department cost = 1,000+100 - 200 = 900 $450 900 EU, materials $990 -= $0.50 = $1,000+100 - 200 = 900 = $1.10 900 EU, conversion costs = 1,000 $1,890 = $2 945 +25 80 (100 x 25%) (200 40%) == 945