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3 Hoyt, Incorporated has a process costing system at its Forest Street Plant. All materials are introduced when conversion costs reach 40 percent. The following
3 Hoyt, Incorporated has a process costing system at its Forest Street Plant. All materials are introduced when conversion costs reach 40 percent. The following information is available for physical units during August: 20 points eBook References Units started in August Units transferred out to Finishing Department in August Work in process, August 1 (85% complete as to conversion costs) Work in process, August 31 (25% complete as to conversion costs) 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. Complete this question by entering your answers in the tabs below. 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 45 percent (from 25 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? Req A Req B Materials Conversion costs Req C1 Req C2 K 165,000 180,000 Req C3 Compute the equivalent units for materials costs and for conversion costs using the weighted-average method. Equivalent Units Reg A 42,000 27,000 Req B >
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