Cost Information During October, McCourt Associates incurred total production costs of $88,450 for copyediting manuscripts and had the following equivalent units schedule: Units completed 290 Units in EWIP x Fraction complete: 25 x 0.6 15 Equivalent units 305 Required: 1. Calculate the cost of copyediting one manuscript for October. per manuscript 2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation. Manuscripts completed EWIP Total assigned 3. What if the costs assigned to units completed and EWIP total were calculated using a unit cost of $320? Calculate the total costs assigned. What is the discrepancy between the costs assigned and the costs to account for?
Cost Information During October, McCourt Associates incurred total production costs of $88,450 for copyediting manuscripts and had the following equivalent units schedule: Units completed 290 Units in EWIP x Fraction complete: 25 x 0.6 15 Equivalent units 305 Required: 1. Calculate the cost of copyediting one manuscript for October. per manuscript 2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation. Manuscripts completed EWIP Total assigned 3. What if the costs assigned to units completed and EWIP total were calculated using a unit cost of $320? Calculate the total costs assigned. What is the discrepancy between the costs assigned and the costs to account for?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 4CE: During October, McCourt Associates incurred total production costs of 60,000 for copyediting...
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![Cost Information
During October, McCourt Associates incurred total production costs of $88,450 for copyediting manuscripts and had the following equivalent units schedule:
Units completed
290
Units in EWIP x Fraction complete: 25 x 0.6
15
Equivalent units
305
Required:
1. Calculate the cost of copyediting one manuscript for October.
per manuscript
2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation.
Manuscripts completed
EWIP
Total assigned
3. What if the costs assigned to units completed and EWIP total were calculated using a unit cost of $320? Calculate the total costs assigned.
What is the discrepancy between the costs assigned and the costs to account for?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F12aa3743-31ae-4e31-bcb5-d85491a54ff2%2F99759997-bd1c-479c-b872-5a0ad157514b%2Fxcgyseq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost Information
During October, McCourt Associates incurred total production costs of $88,450 for copyediting manuscripts and had the following equivalent units schedule:
Units completed
290
Units in EWIP x Fraction complete: 25 x 0.6
15
Equivalent units
305
Required:
1. Calculate the cost of copyediting one manuscript for October.
per manuscript
2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation.
Manuscripts completed
EWIP
Total assigned
3. What if the costs assigned to units completed and EWIP total were calculated using a unit cost of $320? Calculate the total costs assigned.
What is the discrepancy between the costs assigned and the costs to account for?
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