Answered: FIFO method in calcu

Business

Accounting

FIFO method in calcu

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 15MC: Which of the following is the step in which materials, labor, and overhead are detailed? A....

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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explain the treatment for beginning work in process under the FIFO method in calculating the equivalent unit and give an example.

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To record the transfer of costs from a prior process to a subsequent process, the following entry would be made: a. debit Finished Goods and credit Work in Process. b. debit Work in Process (subsequent department) and credit Transferred-In Materials. c. debit Work in Process (prior department) and credit Work in Process (subsequent department). d. debit Work in Process (subsequent department) and credit Work in Process (prior department) e. None of these.
How would you describe the following accounts: Finished Goods, Work in Process, and Materials?
Which is the correct formula for computing the overhead rate? A. estimated use of the cost driver for production/estimated overhead for the activity B. estimated overhead for the product/estimated use of the cost driver for the activity C. estimated use of the cost driver for production/estimated overhead for the activity D. estimated overhead for the activity/estimated use of the cost driver for the activity
Complete the information in the cost computations shown here:
Which of the following are needed to calculate the cost assigned to ending work in process under the FIFO method of process costing, Unit Cost, Equivalent Units, and Cost-IP Beg., respectively: a. No; No; Yes b. Yes; No; No c. Yes; Yes; No d. Yes; Yes; Yes
What are equivalent units for material, if material is added at the beginning of the process?
summarize the total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to the units completed (and transferred out) and units in ending work in process.
the calculation of the equivalent unit is based on ......... of a production process
How does adding direct material at the beginning or end of a process affect the equivalent units
Describe the distinctive characteristic of FIFO computations in assigning costs to units completed and to units in ending work in process.
a. The cost of Work in process beginning, in Dept X is? b. The cost of Work in process -End, in Dept X is? c. The cost of Work in process beginning, in Dept X is?
How is the equivalent unit calculation affected when direct materials are added at the beginning ofthe process rather than uniformly throughout the process?