st Company uses a normal, process costing system to determine product cost. The company es the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning rk-in-process. e product passes through two departments: Department 1 and Department 2. In Department all direct materials are added at the beginning of the process. The following information is ailable for Department 2 in July. Work-in-process, July 1 Units Costs Direct materials Conversion cost Transferred-in cost uly activity Units Transferred in Completed and transferred out Costs added Direct materials Conversion cost Transferred-in-cost ercentage of completion Work-in-process, July 1 Work-in-process, July 31 5,000 units $25,000 16,000 20,000 50,000 units 45,000 units $400,000 184,000 200,000 60% 40%
st Company uses a normal, process costing system to determine product cost. The company es the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning rk-in-process. e product passes through two departments: Department 1 and Department 2. In Department all direct materials are added at the beginning of the process. The following information is ailable for Department 2 in July. Work-in-process, July 1 Units Costs Direct materials Conversion cost Transferred-in cost uly activity Units Transferred in Completed and transferred out Costs added Direct materials Conversion cost Transferred-in-cost ercentage of completion Work-in-process, July 1 Work-in-process, July 31 5,000 units $25,000 16,000 20,000 50,000 units 45,000 units $400,000 184,000 200,000 60% 40%
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...
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