Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Assembly Department uses a process cost acounting system. The department adds materials and incurs conversion costs uniformly throughout the process. During May, $200,000 of

The Assembly Department uses a process cost acounting system. The department adds materials and incurs conversion costs uniformly throughout the process. During May, $200,000 of materials costs and $95,000 in conversion costs were charged to the department. The beginning work in process inventory was $63,000 on May 1, comprised of $40,000 of materials and costs and $23,000 of conversion costs. The company employs the FIFO method of process costing.

Other data for the month is as follows:

Beginning work in process inventory 5/1 -- 25,000 units (40% complete)

Units completed and transferred out -- 50,000 units

Ending work in process inventory 5/31 -- 30,000 units (30% complete)

ANSWER THE FOLLOWING QUESTIONS AND SHOW COMPUTATIONS TO SUPPORT ANSWERS. SHOW ANY AND ALL WORK:

1. How many physical units have to be accounted for in May?

2. What are the equivalent units of production for materials and for conversion costs for the month of May?

3. What is the total cost assigned to the 50,000 units that were transferred out of the process in May?

4. What is the total cost of the May 31 inventory?

Please show all work, thank you

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 Practices In Local Governments An International Comparison

Authors: Laurence Ferry, Pasquale Ruggiero

1st Edition

180117086X, 978-1801170864

More Books

Students also viewed these Accounting questions

Question

4. Why does happiness resist easy change?

Answered: 1 week ago