One company uses the fifo method of accounting for production and information about the first stage of production has become First: - The standard card to produce one unit:- Direct materials (2 kg / unit price of 75 dinars /kg) Direct wages - 150 dinars / unit (3 hours / unit at the rate 80 dinars / hour) VFOH 240 dinars / unit (30 dinars/hour direct) FFOH 60 dinars / unit (25 dinars / hour direct work) The standard cost of the unit 75 dinars / unit Second: - The natural capacity of production (2000) hours 525 dinars / unit Third: The actual information obtained as follows 1- beginning inventory of work in process (800) units (90% conversion costs) and ending inventory of work in process (400) (30% conversion costs) 2-The units that started the stage (3000) units and units completed and converted (3200) unit 3- materials are Added at the Start of the production processes, conversion costs are added equally during the production processes 4- Normal spoilage 6 % good production and inspection point 25 % Production Process 5 -The quantity of materials used in production reached (5750) kg at (85) C. kg and the direct labor hours (8000) hours at a rate of (75) dinars / hour, FOH 350000 D Required - -- prepare Report Equivalent Production - Analysis of the variance bilaterally for all cost elements One company uses the fifo method of accounting for production and information about the first stage of production has become First: - The standard card to produce one unit:- Direct materials (2 kg / unit price of 75 dinars /kg) Direct wages - 150 dinars / unit (3 hours / unit at the rate 80 dinars / hour) VFOH 240 dinars / unit (30 dinars/hour direct) FFOH 60 dinars / unit (25 dinars / hour direct work) The standard cost of the unit 75 dinars / unit Second: - The natural capacity of production (2000) hours 525 dinars / unit Third: The actual information obtained as follows 1- beginning inventory of work in process (800) units (90% conversion costs) and ending inventory of work in process (400) (30% conversion costs) 2-The units that started the stage (3000) units and units completed and converted (3200) unit 3- materials are Added at the Start of the production processes, conversion costs are added equally during the production processes 4- Normal spoilage 6 % good production and inspection point 25 % Production Process 5 -The quantity of materials used in production reached (5750) kg at (85) C. kg and the direct labor hours (8000) hours at a rate of (75) dinars / hour, FOH 350000 D Required - -- prepare Report Equivalent Production - Analysis of the variance bilaterally for all cost elements
