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

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

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Description: Taco Ranch uses a process cost system and the FIFO cost flow assumption. Production begins inthe Crafting Department where direct materials are added at the beginning of the process andconversion costs are incurred uniformly throughout the process.

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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Kronk, Incorporated provides the following information concerning the work in process at its plant: Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are 10 percent complete). Started this month, 74,500 units. Transferred out, 71,500 units. Ending inventory, 35,750 units (materials are 100 percent complete; conversion costs are 60 percent complete). Required: Compute the equivalent units for materials using FIFO. Compute the equivalent units for conversion costs using FIFO.
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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. b) What are the costs assigned to the ending Work in Process inventory on November 30? c) What are the costs assigned to units completed and transferred out during November? I (Ctrl) Rectangu V
The Converting Department of Comfy Touch Towel and Tissue Company had 1,040 units in work in process at the beginning of the period, which were 60% complete. During the period, 21,600 units were completed and transferred to the Packing Department. There were 1,160 units in process at the end of the period, which were 30% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount box does not require an entry, leave it blank. Comfy Touch Towel and Tissue Company Number of Equivalent Units of Production Direct Units Materials Conversion Whole Equivalent Units Equivalent Units Inventory in process, beginning 00000 Started and completed Transferred to Packing Department Inventory in process, ending Total
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