Chap004 (dragged) 5 - $10.80* $4.90 † $ 1 5 . 7 *$10.80 =...

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McGraw-Hill/Irwin ¤ 2005 The McGraw-Hill Companies, Inc. 4 - 6 Solutions Manual EXERCISE 4-20 (30 MINUTES) All three of these companies manufacture large amounts of relatively homogeneous products (i.e., lumber and paper). Therefore, process costing is an appropriate product- costing system. EXERCISE 4-21 (15 MINUTES) CALCULATION OF COST PER EQUIVALENT UNIT: DULUTH GLASS COMPANY Weighted-Average Method D i r e c t Material Conversion Total Work in process, February 1 . ................ $ 43,200 $ 40,300 $ 83,500 Costs incurred during February. ........... 135,000 190,000 3 2 5 , 0 0 0 Total costs to account for. ..................... $178,200 $230,300 $ 4 0 8 , 5 0 0 Equivalent units. ..................................... 16,500 47,000 Costs per equivalent unit. ......................
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Unformatted text preview: $10.80* $4.90 † $ 1 5 . 7 *$10.80 = $178,200 ÷ 16,500 † $4.90 = $230,300 ÷ 47,000 EXERCISE 4-22 (15 MINUTES) CALCULATION OF COST PER EQUIVALENT UNIT: MONTANA LUMBER COMPANY Weighted-Average Method D i r e c t Material Conversion Total Work in process, June 1 . .......................... $ 74,900 $167,000 $ 241,900 Costs incurred during June. ..................... 380,700 625,000 1 , 5 , 7 Total costs to account for. ........................ $455,600 $792,000 $ 1 , 2 4 7 , 6 Equivalent units. ........................................ 6,700 1,600 Costs per equivalent unit. ......................... $68* $495 † $ 5 6 3 *$68 = $455,600 ÷ 6,700 † $495 = $792,000 ÷ 1,600...
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This note was uploaded on 03/28/2012 for the course ACC260 AAAJ0OKG00 taught by Professor Katrenataylor during the Spring '10 term at University of Phoenix.

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