Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are engaged in the audit of the December 31, 2019, financial statements of Epworth Products Corporation. All materials are added to production at the
You are engaged in the audit of the December 31, 2019, financial statements of Epworth Products Corporation. All materials are added to production at the beginning of the manufacturing process (.e. 100% completion), and overhead is applied to each product at the rate of 60 percent of direct labor costs. Epworth uses the FIFO costing method. The current ending balance of work in process account (material and conversion costs) on the record is $860,960. A review of Epworth's 2019 inventory cost records disclosed the following information: % Completed Cost 100% 80% $200,000 $315,000 Beginning work in process: 200,000 units Materials Labor New units started: 1,000,000 units Units completed: 900,000 unites Current Period Material Costs Current Period Labor Costs $1,300.000 $1,991,375 Units in ending work in process account: 300,000 units Material 100% Labor 50% Calculate the cost of per equivalent unit (Material+Conversion) using the FIFO method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started