Demo-case-6-solution

Demo-case-6-solution - Demo Case 1 Solution: 1. Compound X...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Demo Case 1 Solution: 1. Compound X (barrels) 0 50,000 ? 20,000 (55% complete) Since 0 + ? – 50,000 = 20,000, the amount of Compound X started in the first quarter was 70,000 barrels. 2. For the 20,000 barrels of Compound X in process at the end of the first quarter, they were on average 55 percent complete and equivalent to 11,000 barrels of finished product (= 20,000 barrels × 55%). Total quantity of output for the first quarter became 61,000 barrels (= 50,000 barrels completed and transferred out + 11,000 equivalent barrels). Each barrel of Compound X was assigned a cost of $3.80 (= $231,800 ÷ 61,000 barrels). The $231,800 total manufacturing costs incurred were allocated to two cost objects: $190,000 (= $3.80 × 50,000 barrels) to the units transferred out and $41,800 (= $3.80 × 11,000 equivalent barrels) to the ending work-in-process inventory, as shown in the following T-account. Compound X ($)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Demo-case-6-solution - Demo Case 1 Solution: 1. Compound X...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online