Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud.The diamonds are

Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud.The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production.

Below is the company's calculation of cost per equivalent unit for October.During October, the company completed and transferred 8,000 diamonds to finished goods.An additional 4,000 units were still in process at the end of the month.The ending work in process was 60% complete with respect to direct materials and 40% complete with respect to both elements of conversion cost.

create a schedule showing the allocation of total cost between finished goods and ending work in process.

image text in transcribed
Cost Per Equivalent Unit Conversion Total Direct Direct Factory Cost Materials Labor Ovemead Beginning Work in Process $ 3,900,COO $ 1, 170,000 $ 780,000 $ 1,950,050 Cost incurred during period 9,300,000 1,860,000 2.325 000 5.115,000 Total cost $ 13,200,000 $ 3,030,000 $ 3, 105,000 $ 7,065,000 Equivalent units = 10 400 9.600 9.600 Costs per equivalent unit 291.35 $ 323.44 $ 735.94 $1,059.38 $1,350.72

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting IFRS

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

4th Edition

1119607515, 978-1119607519

More Books

Students also viewed these Accounting questions