Chapter 4 Handout Solution

Chapter 4 Handout Solution - ACC200 Introduction to...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC200 Introduction to Managerial Accounting Chapter 4 Handout Solutions SOLUTION TO PROCESS COSTING PROBLEMS PRACTICE PROBLEM #1 : Step #1: Beginning units 50,000 + units started 200,000 - Ending units (30,000) Units completed 220,000 → of which 50,000 were from the beginning units, and →170,000 were started and completed in current period Step #2: 50,000 units X 80% = 40,000 eu’s 170,000 X 100% = 170,000 eu’s 30,000 X 60% = 18,000 eu’s Total Equivalent Units 228,000 eu’s Step #3 Current Period Costs $340,000 ÷ Total EU’s ÷ 228,000 eu’s Cost per EU $1.49 Per EU Step #4 18,000 EU’s in ending inventory X $1.49 per EU = $26,820 Cost of Ending Inventory Step #5 Beginning WIP costs $40,000 + Current Period Costs 340,000 Total Avail. Costs 380,000 - Ending WIP Costs (step #3) (26,820) COGM $353,180
Background image of page 1

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

View Full DocumentRight Arrow Icon
ACC200 Introduction to Managerial Accounting Chapter 4 Handout Solutions SOLUTION TO PROCESS COSTING PROBLEMS PRACTICE PROBLEM #2 : Step #1: Beginning units 3,000 + units started
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Chapter 4 Handout Solution - ACC200 Introduction to...

This preview shows document pages 1 - 3. Sign up to view the full document.

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