Answered step by step
Verified Expert Solution
Question
1 Approved Answer
#1 Aaron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information is available for physical
#1
Aaron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information is available for physical units during March. Work in process, March 1 (70% complete as to conversion costs) Units started in March Units transferred to Finishing Department in March Work in process, March 31 (30% complete as to conversion costs) 158,000 616,000 646,000 128,000 Required: a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method. b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method. c. The company president has been under considerable pressure to increase income. He tells the controller to change the estimated completion for ending work in process to 70 percent (from 30 percent). c-1. What effect will this change have on the unit costs of units transferred to finished goods in March? c-2. Would this be ethical? c-3. Is this likely to be a successful strategy for affecting income over a long period of time? Complete this question by entering your answers in the tabs below. ReqA Req B Req c1 Req C2 Reg C3 Compute the equivalent units for materials costs and for conversion costs using the weighted average method. Equivalent Units Materials Conversion costs Req A Reg B Req C1 Reg C2 Reg C3 Compute the equivalent units for materials costs and for conversion cost Equivalent Units Materials Conversion costs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started