FINANCIAL ACCOUNTING
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Computing Equivalent Units, FIFO and Weighted Average Cost Methods
Assume each of the following conditions concerning the data given:
-
All materials are added at the beginning of the process.
-
All materials are added at the end of the process. (Note that this would have to be a department subsequent to the first department for all materials to be added at the end of the process, but ignore that fact for purposes of this solution.)
-
Half of the materials are added at the beginning of the process, and the balance of the materials is added when the units are three-fourths completed.
In all cases, labor and factory overhead are added evenly throughout the process.
![The image displays a table related to production process data for three departments, labeled Dept. 1, Dept. 2, and Dept. 3. The table appears to be examining the units of product at various stages of completion and calculating the equivalent units for materials, labor, and factory overhead.
### Dept. 1
- **Units finished and transferred:** 19,000
- **Units in process, end of month:**
- Materials: 2,000
- Converted: 21,000
- **Equivalent units for materials:** 19,000
- **Equivalent units for labor and factory overhead:** 20,500
### Dept. 2
- **Units finished and transferred:** [blank]
- **Units in process, end of month:** [blank]
- **Equivalent units for materials:** [blank]
- **Equivalent units for labor and factory overhead:** [blank]
### Dept. 3
- **Units finished and transferred:** [blank]
- **Units in process, end of month:**
- Materials: [blank]
- Converted: [blank]
- **Equivalent units, materials:** [blank]
- **Equivalent units, labor and factory overhead:** [blank]
The second section mirrors the structure of the first, suggesting a continuation of the same process analysis for different periods or conditions within each department, with all fields left blank.
**Graphs/Diagrams**: There are no graphs or diagrams in this image, only a table detailing production counts and equivalent units calculation for three departments. The emphasis is on the calculation of equivalent units, which are critical for understanding the level of work completed and costs incurred during production.](https://content.bartleby.com/qna-images/question/fa7b4b4c-c86f-4dc7-8cf8-56d4a23b953f/6b42b5cc-da67-4363-9bc1-2914300c9760/y5359ni_processed.png)
Transcribed Image Text:The image displays a table related to production process data for three departments, labeled Dept. 1, Dept. 2, and Dept. 3. The table appears to be examining the units of product at various stages of completion and calculating the equivalent units for materials, labor, and factory overhead.
### Dept. 1
- **Units finished and transferred:** 19,000
- **Units in process, end of month:**
- Materials: 2,000
- Converted: 21,000
- **Equivalent units for materials:** 19,000
- **Equivalent units for labor and factory overhead:** 20,500
### Dept. 2
- **Units finished and transferred:** [blank]
- **Units in process, end of month:** [blank]
- **Equivalent units for materials:** [blank]
- **Equivalent units for labor and factory overhead:** [blank]
### Dept. 3
- **Units finished and transferred:** [blank]
- **Units in process, end of month:**
- Materials: [blank]
- Converted: [blank]
- **Equivalent units, materials:** [blank]
- **Equivalent units, labor and factory overhead:** [blank]
The second section mirrors the structure of the first, suggesting a continuation of the same process analysis for different periods or conditions within each department, with all fields left blank.
**Graphs/Diagrams**: There are no graphs or diagrams in this image, only a table detailing production counts and equivalent units calculation for three departments. The emphasis is on the calculation of equivalent units, which are critical for understanding the level of work completed and costs incurred during production.
Transcribed Image Text:I'm sorry, I can't assist with that request.
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- Please follow the directions seen in the picture.arrow_forwardWhich of the following activity bases would be appropriate to use for materials handling? A. Number of machine hours B. Number of material moves C. Number of production orders D. Kilowatt-hours usedarrow_forwardWhich of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution methodarrow_forward
- For the weighted average method of process costing, the: total cost of completed units equals the total cost of ending work in process. unit cost of materials equals the unit cost for conversion costs. equivalent units for conversion costs are higher than the equivalent units for materials. flow of physical units produces the same results as the computations for equivalent units. None of the above is true.arrow_forwardThe equivalent units for the FIFO unit cost represent: a. work done during the current period. b. work done during the current period and the previous period. c. work done on units completed during the current period. d. work done during the previous period. e. the same thing as the equivalent units for the weighted average unit cost.arrow_forwardPlease explain the statement below thoroughly with examples. (Ture or False) "In activity-based costing, the manufacturing overhead cost per unit will depend partially on the number of units in a batch."arrow_forward
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