Question
Iowa Company uses a process costing system. Operating data for the first processing department for the month of June appear below: Units Percent Complete with
Iowa Company uses a process costing system. Operating data for the first processing department for the month of June appear below:
|
| Units | Percent Complete with Respect to Conversion |
| |||||
| Beginning work-in-process inventory |
| 15,000 |
|
| 30% |
| ||
| Started into production during June |
| 75,000 |
|
|
|
| ||
| Ending work-in-process inventory |
| 20,000 |
|
| 70% |
| ||
According to the company's records, the conversion cost in beginning work-in-process inventory was $49,920 at the beginning of June. Additional conversion costs of $855,120 were incurred in the department during the month.
1. How many units are transferred out?
- If Iowa uses the weighted-average method, what are the equivalent units of conversion for the month?
If Iowa uses the weighted-average method, what is the cost per equivalent units of conversion for the month?
3. If Iowa uses the FIFO method, what are the equivalent units of conversion for the month?
If Iowa uses the FIFO method, what is the cost per equivalent units of conversion for the month?
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The Operational Auditing Handbook Auditing Business Processes
Authors: Andrew Chambers, Graham Rand
1st Edition
0471970603, 978-0471970606
