Chapter 18 Class Problem with Answer

Chapter 18 Class Problem with Answer - production for...

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ACII Class Problem Process Costing 1. Bakersfield Company manufactures a variety of chips and utilizes a process costing system. The following information was provided by the accounting department as of May 31, 20xx: a. Units started during the month of May totaled 35,000. b. Units partially complete as of May 31 equaled 8,400. c. Ending work in process inventory as of May 31, 20xx, was 75 percent complete. d. Direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. e. No units were in process on May 1, 20xx. Using the information provided, compute the equivalent units of
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Unformatted text preview: production for direct materials and conversion costs for the month ended May 31, 20xx, assuming a FIFO costing flow. Correct Answer: Bakersfield Company Equivalent Production May 31, 20xx Physical Units Beginning inventory Equivalent Units Units started this period 35,000 Direct Materials % Conversion Costs % Units to be accounted for 35,000 Beginning inventory--Units started and completed 26,600 26,600 100 26,600 100 Ending inventory 8,400 8,400 100 6,300 75 Units accounted for 35,000 35,000 32,900...
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