Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The assembly division of Marzollo Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017:

image text in transcribedimage text in transcribed

The assembly division of Marzollo Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017: B (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Requirement Summarize the total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work in process. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs $ 352,950 $ 285,600 $ 67,350 5,009, 100 3,336,100 1,673,000 Work in process, beginning Costs added in current period $ 5,362,050 $ 3,621,700 $ 1,740,350 Total costs to account for Next, calculate cost per equivalent unit for direct materials and conversion costs. Direct Conversion Materials Costs Costs added in current period 1,673,000 $ 3,336,100 $ 457 478 Divide by equivalent units of work done in current period $ 7,300 $ 3,500 Cost per equivalent unit Finally, assign total costs to units completed (and transferred out) and to units in ending work in process (WIP). Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. Total Direct Conversion Production Costs Materials Costs Completed and transferred out: Work in process, beginning $ 352,950 $ 285,600 $ 67,350 Costs added to beginning WIP in current period 35034000 33361001 1673000 Total from beginning inventory 35386950 x - X Reference Data Table Equivalent Units Conversion Direct Conversion Costs $67,350 Flow of Production Materials Costs Completed and transferred out during current period: From beginning work in process Started and completed Physical Units Direct (Watches) Materials Beginning work in process (May 1) 120 $285,600 Started in May 2017 490 Completed during May 2017 440 Ending work in process (May 31) 170 Total costs added during May 2017 $3,336,100 Degree of completion: direct materials, 85%, conversion costs, 25%. Degree of completion: direct materials, 70%; conversion costs, 40%. 18 90 $1,673,000 320 320 119 68 Work in process, ending 457 478 Equivalent units of work done in current period Print Done Print Done bin by calculating the total from beginning inventory, then calculate the total costs accounted for. Total Direct Conversion

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

The Basics Of IT Audit Purposes Processes And Practical Information

Authors: Stephen D. Gantz

1st Edition

0124171591, 978-0124171596

More Books

Students also viewed these Accounting questions

Question

Draw a picture consisting parts of monocot leaf

Answered: 1 week ago

Question

Develop skills for building positive relationships.

Answered: 1 week ago

Question

Describe techniques for resolving conflicts.

Answered: 1 week ago

Question

Give feedback effectively and receive it appropriately.

Answered: 1 week ago