B-20.03 Problem

B-20.03 Problem - Total Units into Production 11,000...

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B-20.03 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. Zeus Corporation prepared the following "unit reconciliation" for the month of July: UNIT RECONCILIATION: QUANTITY SCHEDULE Beginning Work in Process 5,000 Started into Production 6,000
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Unformatted text preview: Total Units into Production 11,000 EQUIVALENT UNITS CALCULATIONS: CONVERSION DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD To Finished Goods 8,000 8,000 8,000 8,000 Ending Work in Process 3,000 1,800 1,500 1,500 Total Units Reconciled 11,000 9,800 9,500 9,500 The above beginning work in process inventory had an assigned cost of $3,000,000, divided between direct materials (30%), direct labor (20%), and factory overhead (50%). Additional costs incurred during July were $9,500,000, divided between direct materials (15%), direct labor (25%), and factory overhead (60%). Prepare a schedule showing the calculation of cost per equivalent unit. Ending WIP Completion Status: Materials = 60% Conversion = 50%...
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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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