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Category > Accounting Posted 19 Aug 2017 My Price 12.00

equivalent units

41.    Computing equivalent units and cost flows under process costing (Appendix 2.1). Sanchez Company has a process cost accounting system. Sanchez incurred material, direct labor, and manufacturing overhead costs evenly during processing. On September 1, the firm had 20,000 units in process, 40 percent complete, with the following accumulated costs:

 

 

Material.....................................................................................................................................................

$156,000

Direct   Labor .............................................................................................................................................

80,000

Manufacturing Overhead.......................................................................................................................

60,000

 

 

During September, Sanchez started 110,000 units in process and incurred the following costs:

 

 

Material.....................................................................................................................................................

$1,244,000

Direct   Labor .............................................................................................................................................

980,000

Manufacturing Overhead.......................................................................................................................

735,000

 

During September, Sanchez completed 90,000 units. The 40,000 units in ending inventory were, on average, 40 percent  complete.

Prepare a production cost report such as the one in Exhibit 2.10 using FIFO.

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Maurice Tutor
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Status NEW Posted 19 Aug 2017 12:08 AM My Price 12.00

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