I-20.011 Problem

I-20.011 Problem - I-20.011 pounds At the end end of...

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Unformatted text preview: I-20.011 pounds At the end end of February 100 000 pounds were still in process and were Bandit Dog Food uses the FIFO process costing method of accounting for production. Three primary ingredients included in each blend are vitamins, beef, and grain. Other components like food coloring and salt are insignificant in cost and are considered as indirect material elements in establishing the overhead allocation formulas. Factory overhead is applied on the basis of direct labor cost. The entire production process is completed within one department. All raw material is introduced at the beginning of the production process, while conversion costs occur uniformly throughout the production cycle. Beginning work in process, at February 1, consisted of 90,000 pounds that were 80% complete, and had assigned costs as follows: Direct material 45,000 $ Direct labor 20,000 Factory overhead 15,000 February's production cycle resulted in the introduction of an additional 340,000 pounds At the end end of February 100 000 pounds were still in process and were...
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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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