Taco Ranch uses a process cost system and the FIFO cost flow assumption. Production begins in the Crafting Department where direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On November 1, the beginning Work in Process inventory consisted of 10,000 units which were 60% complete and had a cost of $190,000, $100,000 of which were direct materials costs. During November, the following occurred: Direct materials added $225,000 Conversion costs incurred $45,000 Units completed and transferred out in November 40,000 Units in ending Work in Process inventory November 30 (20% complete) 25,000 Answer the following questions and show the computations that support your answers. a) What are the equivalent units of production for direct materials and conversion costs in the

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Taco Ranch uses a process cost system and the FIFO cost flow assumption. Production begins in
the Crafting Department where direct materials are added at the beginning of the process and
conversion costs are incurred uniformly throughout the process. On November 1, the beginning
Work in Process inventory consisted of 10,000 units which were 60% complete and had a cost of
$190,000, $100,000 of which were direct materials costs. During November, the following
occurred:
Direct materials added $225,000
Conversion costs incurred $45,000
Units completed and transferred out in November 40,000
Units in ending Work in Process inventory November 30 (20% complete) 25,000
Answer the following questions and show the computations that support your answers.
a) What are the equivalent units of production for direct materials and conversion costs in the
Crafting Department for the month of November?
|
Rectan
Transcribed Image Text:Taco Ranch uses a process cost system and the FIFO cost flow assumption. Production begins in the Crafting Department where direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On November 1, the beginning Work in Process inventory consisted of 10,000 units which were 60% complete and had a cost of $190,000, $100,000 of which were direct materials costs. During November, the following occurred: Direct materials added $225,000 Conversion costs incurred $45,000 Units completed and transferred out in November 40,000 Units in ending Work in Process inventory November 30 (20% complete) 25,000 Answer the following questions and show the computations that support your answers. a) What are the equivalent units of production for direct materials and conversion costs in the Crafting Department for the month of November? | Rectan
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