Question
Use the following information of the company Carnival Kayaks to determine cost per unit. Assume that the equivalent units are 92,000 and 85,600 respectively for
Use the following information of the company Carnival Kayaks to determine cost per unit. Assume that the equivalent units are 92,000 and 85,600 respectively for each component of cost. Use the FIFO method.
| Flow of Production | Physical units | Direct Materials | Conversion |
| Work in process, beginning | 40,000 |
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| Started during period | 52,000 |
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| To account for | 92,000 |
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| Good units completed | 73,000 | 73,000 | 73,000 |
| Normal spoilage | 3,000 | 3,000 | 3,000 |
| Work in process, ending | 16,000 | 16,000 | 9,600 |
| Accounted for | 92,000 | 92,000 | 85,600 |
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| Costs | Totals | Direct Materials | Conversion |
| Work in process, beginning | $38,000 | $30,000 | $8,000 |
| Costs added during period | 186,880 | 126,400 | 60,480 |
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| Total costs to account for | 224,880 | 156,400 | 68,480 |
- $2.50
- $2.1045
- $2.4443
- $2.08045
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Cornerstones Of Financial Accounting
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone
2nd Canadian Edition
0176707123, 978-0176707125
