FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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## Using Excel to Calculate Cost per Equivalent Unit

### Problem Statement

Funenstiens roasts peanuts and uses the FIFO method of process costing for their roasting process. Below is the information provided for this month's production:

- **Direct materials costs added to production:** $3,400
- **Conversion costs added to production:** $3,875
- **Direct materials costs in beginning inventory:** $600
- **Conversion costs in beginning inventory:** $800

### Equivalent Units Completed During the Month

- For Direct Materials: 4,600 units
- For Conversion Costs: 4,450 units

### Student Work Area

#### Task

1. **Input the required mathematical formulas** or functions using cell references to solve the problem.

#### Required Calculations

- **Total Costs to Account For:**
  - **Direct Materials:** [Cell for calculation]
  - **Conversion Costs:** [Cell for calculation]
  - **Total:** [Cell for calculation]

- **Determine the Company's Cost per Equivalent Unit:**
  - Calculate for both Direct Materials (DM) and Conversion Costs for the current month.
    - **Cost per Equivalent Unit Formula:**
      - Direct Materials: [Calculation based on input]
      - Conversion Costs: [Calculation based on input]

This section encourages students to use Excel’s built-in functions to compute cost data efficiently, practicing real-world financial analysis skills using process costing principles.
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Transcribed Image Text:## Using Excel to Calculate Cost per Equivalent Unit ### Problem Statement Funenstiens roasts peanuts and uses the FIFO method of process costing for their roasting process. Below is the information provided for this month's production: - **Direct materials costs added to production:** $3,400 - **Conversion costs added to production:** $3,875 - **Direct materials costs in beginning inventory:** $600 - **Conversion costs in beginning inventory:** $800 ### Equivalent Units Completed During the Month - For Direct Materials: 4,600 units - For Conversion Costs: 4,450 units ### Student Work Area #### Task 1. **Input the required mathematical formulas** or functions using cell references to solve the problem. #### Required Calculations - **Total Costs to Account For:** - **Direct Materials:** [Cell for calculation] - **Conversion Costs:** [Cell for calculation] - **Total:** [Cell for calculation] - **Determine the Company's Cost per Equivalent Unit:** - Calculate for both Direct Materials (DM) and Conversion Costs for the current month. - **Cost per Equivalent Unit Formula:** - Direct Materials: [Calculation based on input] - Conversion Costs: [Calculation based on input] This section encourages students to use Excel’s built-in functions to compute cost data efficiently, practicing real-world financial analysis skills using process costing principles.
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Follow-up Question

I am having problems understanding the answer can you check the picture and give me more information because it was wrong

Student Work Area
Required: Provide input into cells shaded in yellow in this template. Input the required
mathematical formulas or functions with cell references to the Problem area or work area as
How much total cost does Funenstiens need to account for this month?
Costs added to WIP Inventory this period
Costs added to WIP Inventory this period
Costs added to WIP Inventory this period
Costs in beginning WIP Inventory
Costs in ending WIP Inventory
Cost per equivalent unit
Total costs to account for
De
cur Total equivalent units of work done this period
45
Cost per equivalent unit
Direct Materials Conversion Costs Total
nit for both DM and conversion costs. For the
Direct Materials Conversion Costs
expand button
Transcribed Image Text:Student Work Area Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as How much total cost does Funenstiens need to account for this month? Costs added to WIP Inventory this period Costs added to WIP Inventory this period Costs added to WIP Inventory this period Costs in beginning WIP Inventory Costs in ending WIP Inventory Cost per equivalent unit Total costs to account for De cur Total equivalent units of work done this period 45 Cost per equivalent unit Direct Materials Conversion Costs Total nit for both DM and conversion costs. For the Direct Materials Conversion Costs
Solution
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Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

I am having problems understanding the answer can you check the picture and give me more information because it was wrong

Student Work Area
Required: Provide input into cells shaded in yellow in this template. Input the required
mathematical formulas or functions with cell references to the Problem area or work area as
How much total cost does Funenstiens need to account for this month?
Costs added to WIP Inventory this period
Costs added to WIP Inventory this period
Costs added to WIP Inventory this period
Costs in beginning WIP Inventory
Costs in ending WIP Inventory
Cost per equivalent unit
Total costs to account for
De
cur Total equivalent units of work done this period
45
Cost per equivalent unit
Direct Materials Conversion Costs Total
nit for both DM and conversion costs. For the
Direct Materials Conversion Costs
expand button
Transcribed Image Text:Student Work Area Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as How much total cost does Funenstiens need to account for this month? Costs added to WIP Inventory this period Costs added to WIP Inventory this period Costs added to WIP Inventory this period Costs in beginning WIP Inventory Costs in ending WIP Inventory Cost per equivalent unit Total costs to account for De cur Total equivalent units of work done this period 45 Cost per equivalent unit Direct Materials Conversion Costs Total nit for both DM and conversion costs. For the Direct Materials Conversion Costs
Solution
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by Bartleby Expert
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