1-ABC production company calculates production costs according to the phase cost system. The information of the business for the period of June 2021 is as follows:According to the information given above, what is the equivalent unit cost in terms of direct labor costs for the period? Production started : 25,000 unitsCompleted and transferred : 17,000 units8,000 unitsD.I.M.M. in terms of 90%Cnd of period stock of semi-finishe@. 60% in terms of laborproducts:Completion Degrees:G.U.G. in terms of 60%June Production ExpensesDirect First Material and Material ExpensesDirect Labor Expenses1.210.000 TL436.000 TLGeneral Production Expenses872.000 TL

Answered: -ABC production company calculates…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1-ABC production company calculates production costs according to the phase cost system. The information of the business for the period of June 2021 is as follows:

According to the information given above, what is the equivalent unit cost in terms of direct labor costs for the period?

Production started : 25,000 units
Completed and transferred : 17,000 units
8,000 units
D.I.M.M. in terms of 90%
Cnd of period stock of semi-finishe@. 60% in terms of labor
products:
Completion Degrees:
G.U.G. in terms of 60%
June Production Expenses
Direct First Material and Material Expenses
Direct Labor Expenses
1.210.000 TL
436.000 TL
General Production Expenses
872.000 TL

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In process costing some units gets work in process at the year end hence to evaluate proper costing we use statement of equivalent unit so that proper cost can be ascertain.

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