Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information relates to Department Z for the month of July, the sole processing department of Company ABC. 23,000 units (5,000 units from Beginning

The following information relates to Department Z for the month of July, the sole processing department of Company ABC. 23,000 units (5,000 units from Beginning WIP and 18,000 units started and completed during July) were transferred out of the department to finished goods. 2,000 units remain in the department at the end of July. A calculation of equivalent units for work performed during July appears below:

Equivalent Units

Equivalent Units

Direct Materials

Labor and Overhead

Beginning WIP

0

1,500

Units started and

Completed

18,000

18,000

Ending WIP

2,000

1,600

Total

20,000

21,100

a) Assume that cost per equivalent unit of direct materials equals $10.00 per unit and that the combined cost per equivalent unit of direct labor and factory overhead equals $20.00 per unit. Also assume that prior period beginning work in process costs total $10,000. Costs of units started and completed using the FIFO method would equal

b) Assume that cost per equivalent unit of direct materials equals $10.00 per unit and that the combined cost per equivalent unit of direct labor and factory overhead equals $20,00 per unit. Also assume that prior period beginning work in process costs total $10,000. Costs of ending work-in-process using the FIFO method would equal

c) Assume that cost per equivalent unit of direct materials equals $10.00 per unit and that the combined cost per equivalent unit of direct labor and factory overhead equals $20 per unit. Also assume that prior period beginning work in process costs total $10,000. Total costs of units transferred out of the department during the current month using the FIFO method would equal

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

Management Control Systems

Authors: Kenneth Merchant, Wim Van Der Stede

5th Edition

1292444134, 9781292444130

More Books

Students also viewed these Accounting questions

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago