
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Amsterdam Corporation produces medical grade isotopes. The isotopes are produced in a
continuous process and Amsterdam uses the FIFO process costing method of accounting for production
The production process requires constant utilization of facilities and eqaipment, as well as direct labor
by skilled technicians As a result, direct labor and factory overhead are both deemed to be introduced
uniformly throughout prodaction.
Amsterdam Corporation prepared the following "unit reconciliation for the month of Apei
Started into Production
2000
To Finished Goods
7500
2.250
2A2S
2.525
From beginning W
Started and completed
500
4500
Ending Work in Process
Total Uhits Reconciled
The above beginning work in process inventory had an assigned cost of $4 500,000, divided between
direct materials (30%), direct labor (35%), and factory overhead (39%).
Additional costs incurred during April were $15,000,000, divided between direct material, (15%), direct
labor (20%), and factory overhead (65%).
Prepare a schedule showing the calculation of cost per equivalent unit.
Worksheet 2
COST PER EQUIVALENT UNIT
OTAL COST
DIRECT MATERALS DIRECT LADOR
FACTORY OVERHEAD
Beginning Work in Proces
Cost Incurred durling period
Total cott
Equialent units
Costs per equalent unt
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- 18. ( / Geller Corp. manufactures breath mints in a mass production environment and uses process costing to allocate costs to inventory. All manufacturing is completed in one manufacturing department. Direct materials are added at the beginning of the manufacturing process and conversion costs are added evenly throughout. The following information was reported for current period: Beginning WIP 24,000 units Direct Materials Conversion (15% complete) Started 64,000 Units Direct Materials Conversion Ending WIP 18,000 Units (60% complete) Costs $ 121,600 $ 445,040 $ 688,000 $ 880,080 b. Calculate Geller's physical flow of units, equivalent units, cost per equivalent unit and assign costs to Finished Goods and Ending Work-In-Process using the FIFO method of processing costing.arrow_forwardThe Molding Department of Bonita Company has the following production data: beginning work in process inventory 26000 units (70% complete as to conversion), started into production 473000 units, completed and transferred out 449000 units, and ending work in process inventory 50000 units (30% complete as to conversion). Assuming that conversion costs are incurred uniformly during the process, the equivalent units of production for conversion costs are 464000. 449000. 458000. 499000.arrow_forwardRequired: Trout, Incorporated, adds direct materials at the beginning of the process, while conversion costs are incurred uniformly throughout the process. At the beginning of the period, Work In Process Inventory was 40% complete. At the end of the period, Work in Process Inventory was 70% complete. Trout, Incorporated, started the following production report: Complete the production report by filling in the missing amounts. Note: Round your "Cost per Equivalent Unit" answers to 2 decimal places. UNITS Units to be accounted for Beginning Work in Process Started into Production Total units Units accounted for: TROUT, INCORPORATED Process Costing Production Report (Weighted Average Method) Step 1: Physical Units Completed and transferred Ending Work in Process Total units COSTS Beginning inventory Current period costs Total manufacturing costs 3,000 7,800 $3,900 3,900 7,800 Step 2 Equivalent Units Direct Materials Conversion Cost 3,900 3,900 7,800 6,630 Step 3: Cost per Equivalent Unit…arrow_forward
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