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Z Company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs
Z Company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. The production quantity schedule for April is reproduced below: Units Work in process on April 1 (60% complete as to conversion costs) 1,000 Units started during April 5,000 Total units to account for 6,000 Units completed and transferred out 4,000 Work in process on April 30 (20% complete as to conversion costs) 2,000 Total units accounted for 6,000 Costs pertaining to the month of April are as follows: Beginning inventory costs: (DM, P54,600; Conversion, P35,560) P 90,160 Costs incurred during April (DM, P468,000; Conversion P574,060) P1,042,060 Using the weighted average method, the equivalent units for conversion costs for April are:
Z Company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. The production quantity schedule for April is reproduced below:
Units
Work in process on April 1 (60% complete as to conversion costs) 1,000
Units started during April 5,000
Total units to account for 6,000
Units completed and transferred out 4,000
Work in process on April 30 (20% complete as to conversion costs) 2,000
Total units accounted for 6,000
Costs pertaining to the month of April are as follows:
Beginning inventory costs: (DM, P54,600; Conversion, P35,560) P 90,160
Costs incurred during April (DM, P468,000; Conversion P574,060) P1,042,060
Using the weighted average method, the equivalent units for conversion costs for April are:
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
9th edition
290-1259222138, 1259222136, 978-1259222139
