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Chap004 (dragged) 30

# Chap004 (dragged) 30 - £93,500 £55,000 £ 1 4 8 5...

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McGraw-Hill/Irwin ¤ 2005 The McGraw-Hill Companies, Inc. Managerial Accounting, 6/e 4-31 PROBLEM 4-35 (30 MINUTES) 1. a. Equivalent units: Percentage o f C o m p l e t i o n w i t h R e s p e c t T a x t o R e t u r n s C o n v e r s i o n ( p h y s i c a l ( l a b o r a n d E q u i v a l e n t U n i t s u n i t s ) o v e r h e a d ) L a b o r O v e r h e a d Returns in process, February 1. ... 300 20% Returns started in February. ......... 900 Total returns to account for . ......... 1,200 Returns completed d u r i n g F e b r u a r y . . . . . . . . . . . . . . . . . . . . . . . . 8 0 0 100% 800 800 Returns in process, February 28. . 400 75% 300 300 Total returns accounted for . ......... 1,200 ____ ____ Total equivalent units of activity . . 1 , 1 0 0 1 , 1 0 0 b. Costs per equivalent unit: L a b o r Overhead Total Returns in process, February 1. .................. £ 3,500 £ 4,000 £ 7,500 Costs incurred during February . ................. 90,000 51,000 1 4 1 , 0 0 0 Total costs to account for . ...........................
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Unformatted text preview: £93,500 £55,000 £ 1 4 8 , 5 Equivalent units. ............................................ 1,100 1,100 Costs per equivalent unit . ............................ £85.00 £50.00 £135.00 2. Cost of returns in process on February 28: Labor: equivalent units u cost per equivalent unit 300 u £85.00. ....................................................... £25,500 Overhead: equivalent units u cost per equivalent unit 300 u £50.00. ....................................................... 15,000 T o t a l c o s t o f r e t u r n s i n process on February 28. ......................................... £40,500...
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