FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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8. The Molding Department of PQR Company has the following production and manufacturing cost
data for September. Materials are entered at the beginning of the process.
Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30%
complete as to conversion costs; units started during the period are 18,400; ending inventory of
5,000 units 10% complete as to conversion costs.
Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180
of conversion costs; materials costs added in Polishing during the month, $177,200; labor and
overhead applied in Polishing during the month, $102,680 and $257,140, respectively.
Instructions
(a) Compute the equivalent units of production for materials and conversion costs for the month
of September.
(b) Compute the unit costs for materials and conversion costs for the month.
(c) Determine the costs to be assigned to the units transferred out and in process.
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Transcribed Image Text:8. The Molding Department of PQR Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process. Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 18,400; ending inventory of 5,000 units 10% complete as to conversion costs. Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion costs; materials costs added in Polishing during the month, $177,200; labor and overhead applied in Polishing during the month, $102,680 and $257,140, respectively. Instructions (a) Compute the equivalent units of production for materials and conversion costs for the month of September. (b) Compute the unit costs for materials and conversion costs for the month. (c) Determine the costs to be assigned to the units transferred out and in process.
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