Chapter 4 Handout Solution

# Chapter 4 Handout Solution - ACC200 Introduction to...

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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

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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
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Chapter 4 Handout Solution - ACC200 Introduction to...

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