Verer Custom Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute 4% of the good units. Data provided for March 2017 are as follows: WIP, beginning inventory 3/1/2017 Direct materials (100% complete) Conversion costs (80% complete) Started during March Completed and transferred out WIP, ending inventory 3/31/2017 Direct materials (100% complete) Conversion costs (70% complete) Costs: WIP, beginning inventory: Direct materials Conversion costs Direct materials added 32,700 units 70,000 units 80,200 units 18,600 units $70,000 40,400 106,000 128,160 Conversion costs added Using the FIFO method, what are equivalent units with respect to conversion?

Verer Custom Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute 4% of the good units. Data provided for March 2017 are as follows: WIP, beginning inventory 3/1/2017 Direct materials (100% complete) Conversion costs (80% complete) Started during March Completed and transferred out WIP, ending inventory 3/31/2017 Direct materials (100% complete) Conversion costs (70% complete) Costs: WIP, beginning inventory: Direct materials Conversion costs Direct materials added 32,700 units 70,000 units 80,200 units 18,600 units $70,000 40,400 106,000 128,160 Conversion costs added Using the FIFO method, what are equivalent units with respect to conversion?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....

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