Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The difference in the denominator units (for purposes of calculating cost per unit) between the weighted average and the FIFO methods is that the units

image text in transcribed
The difference in the denominator units (for purposes of calculating cost per unit) between the weighted average and the FIFO methods is that the units in the ending work in process inventory are not included in the FIFO calculation. a true false In computing unit cost figures for materials and conversion, costs in the beginning work in process inventory are not included in the numerator when the FIFO method is used. true b. false The following information applies to questions through 5: Miller's Root Beer is produced in two sequential processes Blending and Bottling. During September, the following data was collected for the Blending department: Number Materials Labor and Overhead of Units Percent Completed Percent Completed Work in process inventory, Sept 1 12.000 100% 20% Started into production during Sept 60,000 Completed and transferred 64,000 Work in process inventory, Sept 30 8,000 100% 60% Costs for Sept: Materials Labor and Overhead Work in process, Sept 1 $ 38,400 $ 1.800 $ 53,120 Added during the month $194,400 3. Assuming that the FIFO method is used, what is the materials cost per unit (round your answer, if necessary, to the nearest cent)? a $3.35 c. $3.38 $3.24 d. $3.28 Assuming that the FIFO method is used, what is the conversion cost per unit (round your answer, if necessary, to the nearest cent)? a. S.82 5.86 b. S.78 d. 5.80 Ignore your answers to W3 and 14. Assume that the materials cost per unit is $3.30 and the conversion cost per unit is 5.85, using the FIFO method. Which of the following is the correct journal entry to transfer the cost of completed units from the Blending department to the Bottling department using the FIFO method? a. debit WIP-Bottling $223.960, credit WIP-Blending $223,960 debit WIP-Blending $264,160; credit WIP-Bottling $264,160 debit WIP-Blending $223,960: credit WIP-Bottling $223,960 a debit WIP-Bottling $264,160; credit WIP-Blending $264,160 All production costs have been steadily rising at the Donner Company for several periods. In this environment, Donner Company's cost of ending Work In Process inventory using the FIFO method would be: the same as that computed under the weighted average method. higher than that computed under the weighted average method. c. lower than that computed under the weighted average method

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

Horngrens Accounting The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

ISBN: 0136162185, 9780136162186

More Books

Students also viewed these Accounting questions