B-20.02 Problem

B-20.02 Problem - During June an additional 8,000 diamonds...

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B-20.02 Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process and Zeus uses the weighted-average process costing method of accounting for production. The production process requires constant utilization of facilities and equipment, as well as direct labor by skilled technicians. As a result, direct labor and factory overhead are both deemed to be introduced uniformly throughout production. At the beginning of June, 20X9, 4,000 diamonds were in process.
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Unformatted text preview: During June, an additional 8,000 diamonds were started. 7,000 diamonds were completed and transferred to finished goods. As of the beginning of the month, work in process was 80% complete with respect to materials and 60% complete with respect to conversion costs. As of the end of the month, work in process was 70% complete with respect to materials and 40% complete with respect to conversion costs. Prepare a "unit reconciliation" schedule that includes calculations showing the equivalent units of materials, direct labor, and factory overhead for June....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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