Question
Houa Corp. manufactures charcoal in a mass production environment and uses process costing to allocate costs to inventory. All manufacturing is completed in one manufacturing
Houa Corp. manufactures charcoal in a mass production environment and uses process costing to allocate costs to inventory. All manufacturing is completed in one manufacturing department. Direct materials are added at the beginning of the manufacturing process and conversion costs are added evenly throughout. The following information was reported for current period:
| Cost | |
| Beginning WIP | |
| 50,000 units | |
| Direct Materials | $51,000 |
| Conversion (75% complete) | $97,115 |
| Started | |
| 200,000 units | |
| Direct Materials | $304,000 |
| Conversion | $499,525 |
| Ending WIP | |
| 40,000 units (40% complete) |
a. Calculate Houas physical flow of units, equivalent units, cost per equivalent unit and assign costs to Finished Goods and Ending Work In Process using the Weighted Average method of processing costing. Show all work.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
