How to get the 85,00 materials?

nstructions

(a)

Compute equivalent units of production for materials and for conversion costs.

(b)

Determine the unit costs of production.

(c)

Show the assignment of costs to units transferred out and in process.

Ans: N/A, SO: 5,6, Bloom: AP, Difficulty: Medium, Min: 8, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC:

Problem Solving, IMA: Cost Management

Solution 176

(8 min.)

(a)

Materials: 85,000

(1)

+ 30,000 = 115,000

Conversion costs: 85,000 + (30,000

60%) = 103,000

(1)

25,000 + 90,000 - 30,000

(b)

Materials: $161,000/115,000 = $1.40

Conversion costs: ($235,400 + $176,600)/103,000 = $4.00

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