Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 3, Problem 3.18E
Compute equivalent units, unit costs, and costs assigned. (LO 5), AP
The Smelting Department of Polzin Company has the following production and cost data for September.
Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion costs; units started and finished 9.000 units; and ending work in process 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs.
Polzin uses the FIFO method to compute equivalent units.
Instructions
(a) Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of September.
(b) Compute the unit costs for the month.
(c) Determine the costs to be assigned to the units transferred out and in process.
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Chapter 3 Solutions
Managerial Accounting: Tools for Business Decision Making
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