Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2. (14 Marks) Yum Yum Meat Company uses a process costing system. The following information relates to one month's activity in the company's Curing

image text in transcribed
image text in transcribed
Question 2. (14 Marks) Yum Yum Meat Company uses a process costing system. The following information relates to one month's activity in the company's Curing Department: Conversion Percentage Complete 20% Units Beginning work in process inventory Units started Units completed and transferred out Ending work in process inventory 10,000 21,000 26,000 5,000 80% The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred. Required: a) Assume that the company uses the FIFO method. Compute the following: 1. The equivalent units of production for conversion for the month. (2Marks) 2. The cost per equivalent unit for conversion for the month. (1 Mark) 3. The total cost transferred out during the month. (3 Marks) 4. The cost assigned to the ending work-in-process inventory. (2 Marks) b) Assume that the company uses the weighted average cost method. Compute the following: 1. The equivalent units of production for conversion for the month. (1 Mark) 2. The cost per equivalent unit for conversion for the month.(2 Marks) 3. The total cost transferred out during the month. (1 Mark) 4. The cost assigned to the ending work-in-process inventory. (2Marks) Question 3 (12 Marks) John Doe Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information: Units Materials Conversion 100,000 500,000 $100,000 Work in process, Jan. 1 80% complete with respect to conversion costs Units started into production Costs added during the year. Materials Conversion Units completed during the year $157,500 $650,000 $997,500 450,000 The company uses the weighted average method in its process costing system. The ending inventory is 50% complete with respect to conversion costs. Required: a) Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. (6 Marks) b) Determine the cost transferred to finished goods. (4 Marks) c) Determine the amount of cost that should be assigned to the ending work-in-process inventory. (2 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principle And Practice

Authors: Satyabrata Tripathy

1st Edition

9332519382, 9789332519381

More Books

Students also viewed these Accounting questions

Question

9 Outline Speak e-marketing objectives for your organization.

Answered: 1 week ago

Question

Which LAN topology is the industry standard? Ring WAN BUS Star

Answered: 1 week ago

Question

Describe the appropriate use of supplementary parts of a letter.

Answered: 1 week ago