Brown Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for: Units, beginning work in process Units started Total units to account for Units accounted for: Units, ending work in process Units completed Units accounted for 4,000 (40% complete) |||| 8,000 (50% complete) Costs in beginning work in process for the Polishing Department were direct materials, $5,000; con- version costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.

Brown Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for: Units, beginning work in process Units started Total units to account for Units accounted for: Units, ending work in process Units completed Units accounted for 4,000 (40% complete) |||| 8,000 (50% complete) Costs in beginning work in process for the Polishing Department were direct materials, $5,000; con- version costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.

Name: Assume the company uses the FIFO method.Prepare a schedule of equivale
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Description: Assume the company uses the FIFO method.Prepare a schedule of equivalent units, and compute the unit cost for the month of December. Brown Company has a product that passes through two processes: Grinding and Polishing. DuringDecember, the Grinding D

Cornerstones of Cost Management (Cornerstones Series)

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Author:Don R. Hansen, Maryanne M. Mowen

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Chapter6: Process Costing

Section: Chapter Questions

Problem 22E: Fordman Company has a product that passes through two processes: Grinding and Polishing. During...

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Using the same data found in Exercise 6.22, assume the company uses the FIFO method. Required: Prepare a schedule of equivalent units, and compute the unit cost for the month of December. Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000.
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