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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