Parker Corporation makes candy bars. One of its processing departments reported the following information for August. Beginning work in process costs included $50,000 in direct materials and $110,000 in conversion cost. A total of $144,000 of direct materials costs and $210,000 in conversion cost was incurred during the month. Equivalent units totaled 12,000 for direct materials and 8,000 for conversion cost. Using the first-in, first-out (FIFO) method, Parker's cost per equivalent unit for conversion during August would be:

Question

 

 

 

 

We discuss how to calculate the number of equivalent units and the
equivalent cost per unit, and to reconcile the total cost of Work in
Process Inventory using the first-in, first-out (FIFO) method. You also
understood how to prepare the process costing production report
using the first-in, first-out (FIFO) method.

 

 

Knowledge Check 02
Parker Corporation makes candy bars. One of its processing departments
reported the following information for August. Beginning work in process costs
included $50,000 in direct materials and $110,000 in conversion cost. A total of
$144,000 of direct materials costs and $210,000 in conversion cost was
incurred during the month. Equivalent units totaled 12,000 for direct materials
and 8,000 for conversion cost. Using the first-in, first-out (FIFO) method,
Parker's cost per equivalent unit for conversion during August would be:

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Job Costing

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: On March 1, Dillmore Corporation had office supplies on hand of $900. During the month, Dill-more pu...

A: This numerical has covered the concept of Adjusting Entries. The adjusting entry was passed at the e...

Q: Cozy Inc. incurred and paid the following costs during the year ended December 31, 2019:   Labor...

A: Research and development expenditure: It is an expenditure incurred by a company to find and create ...

Q: You are the lead S-Corporations tax specialist in your area. Your client, Cathyrn, has purchased an ...

A: The following are the criteria which should be fulfilled for recognizing a company as S Corporation:...

Q: Curley Maple has produced handcrafted tables for wholesale in his woodworking shop for the past year...

A: Non-Productive time is the unproductive or not beneficial time, in which not producing goods directl...

Q: Which of the following entities can use cost-volume-profit (CVP) analysis?   Multiple Choice   ...

A: CVP analysis is considered as a decision-making tool that helps management to make strategies and ta...

Q: Required: What is the cost per unit transferred to finished goods inventory for each of the three mo...

A: Computation assembly cost per unit.

Q: Bonita Company is constructing a building. Construction began on February 1 and was completed on Dec...

A:     A weighted average interest rate is an average that is adjusted to reflect the contribution of e...

Q: The 2014 comparative balance sheet and 2014 income statement of Byfield Co Ltd, have just been distr...

A: Gain on sale of plant asset=Sale procced - Book value=308,200-205,000=103,200

Q: Which of the following tax items is of most value in terms of tax savings to a taxpayer? Choose the ...

A: Taxable income: It is the gross total income on which the taxes are imposed by the government for a ...

Q: I need help determining the cost assigned to inventory and the cost of goods sold using FIFO. Some o...

A: Perpetual inventory system: Under this inventory system, the records of inventory are continuously u...

Q: Case:Mercurial Company has made the following information available for its production facility for ...

A: Total Overhead Variance: This is the difference between the budgeted total overhead and the actual t...

Q: Which of the following formulas can be used to represent targeted pretax profit, πB, as a function o...

A: option 1 is correct  πB = πA/(1 - t)   πB = Pretax target profit   πA=Post tax profit  t=Tax rate 

Q: Return on Investment The income from operations and the amount of invested assets in each division o...

A: Return on investment = Income from operations/Total assets x100

Q: Hello question is attached, thanks.

A:   In the above question we have asked to prepare Sales Activity Variance of OSAGE, INC. on the basis...

Q: PROBLEM 2-24 Income Statement; Schedule of Cost of Goods Manufactured [L01, LO2, LO3, LO4]. Visic Co...

A: Raw materials: It is the basic input required to manufacture the finished products. The raw material...

Q: From the following transactions for Casio Company, find the required balances for the month ended No...

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received an...

Q: 2. The unadjusted trial balance of S&M Corporation as on June 30, 2020 are as follows: Cash Inventor...

A: Income Statement: It is a financial statement showing a summary of sales/revenues, operating/non-ope...

Q: On November 1, 2014, EZ Products borrowed $48,000 on a 5%, 10-year note with annual installment paym...

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in ...

Q: Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $290 pe...

A: Journal entries refers to the process of recording the financial transactions of a company in its ac...

Q: Which of the folowing tax items is of most value in terms of tax savings to a taxpayer? Choose the c...

A: Taxable income: It is the gross total income on which the taxes are imposed by the government for a ...

Q: I need help with Question 2 and 3 show working out       1. Reconstruct the company’s comparative ba...

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business dur...

Q: The manufacturing cost of Mocha Industries for three months of the year are provided below: Total Co...

A: High- Low method splits the Fixed costs and Variable costs

Q: CVP analysis with multiple products assumes that sales will continue at the same mix of products, ex...

A: When there are multiple products, there is change in the product mix then the weighted average is be...

Q: 8. A business operated at 100% of capacity during its first month, with the following results: Sa...

A: Sales   90,000 Less: Variable Cost of Goods sold     Opening Inventory 0   Add: Variable cost ...

Q: Problem 16-72 (Algo) Variance Computations with Missing Data (LO 16-5, 6) The following information...

A: Variances: The variances are used to calculate the variation in actual cost by comparing it to the s...

Q: Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inv...

A: Total cost = Inventory Quantity x  Cost per Unit Total Market = Inventory Quantity x Market Value pe...

Q: Radison Enterprises sells a product for $57 per unit. The variable cost is $26 per unit, while fixed...

A: Break-even analysis is a technique widely used by the production department. It helps to determine t...

Q: Pedroni Fuel Company is a small oil services company owned and operated by Ray Zorzi. On October 31,...

A: Adjusting entries: These entries are passed at the end of a particular accounting or financial year ...

Q: Love Co. sold merchandise to Kind Co. on account, P35,000, terms 2/15, net 45. The cost of the merch...

A: Cost of goods sold less return=Cost of goods sold-Return=P 24,500-P1,700=P 22,800

Q: Accounting Question

A: Bond is essentially a debt investment wherein investor finances money to an entity for a specified t...

Q: Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill ...

A: Common-size income statement: It shows the vertical analysis and each item as percentage of the amou...

Q: please help me with this =( On May 12, Wilcox Company accepted delivery of $20,000 of merchandise an...

A: Following are the Journal entries recorded

Q: On January 1, 2020, a machine was purchased for $1.060,000 by Marin Co. The machine is expected to h...

A: Year Annual Payments PVIF @ 9 % Present value Interest 1 250000 1 250000 0 2 250000 0.9174 22935...

Q: Camilo's property, with an adjusted basis of $304,000, is condemned by the state. Camilo receives pr...

A: Step 1: Compute Camilo's realized gain: Step 2: Compute Camilo's recognized gain: Camilo's recogniz...

Q: The 2014 comparative balance sheet and 2014 income statement of Simple Things Industries Ltd have ju...

A: (1) The table below shows the comparative balance sheet:

Q: Quigley Co. bought a machine on January 1,2016 for $1,400,000. it had a 122,600 estimated residual v...

A: Whenever a capital asset is purchased it shall be capitalized to the balance sheet not expensed to p...

Q: Cost of sales Food and beverages $500,000 Shirts and caps $25,000 Other Expenses Administrative $30,...

A:         Operating statement is also termed as income statement where it shows the company's income a...

Q: The 2014 comparative balance sheet and 2014 income statement of Byfield Co Ltd, have just been distr...

A:            Statement of Cash flow is one of the main financial statement which reports Cash inflow a...

Q: Income taxes have the following effect on the breakeven point calculation:   Multiple Choice   ...

A: While calculating the breakeven point, fixed cost and contribution margin is being considered and in...

Q: I have done the post closting trial balance and it is way off.. maybe my journal entries are off..  ...

A: Closing Entries:- These entries are prepared at the end of the Accounting Period to close Temporary ...

Q: Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Nash Company. The...

A: Amortization schedule: This schedule shows the lease outstanding, payments and interest expense for ...

Q: Solvency and Profitability Trend Analysis (Picture is attached and this is the only one I got wrong,...

A: Return on total assets = Net income/Average Total assets where, Average Total assets = (Beginning To...

Q: Discuss:  Special Business Forms and Contract Liability The city of Papagos, Arizona, had a deterior...

A: Contract: A contract is a legally enforceable agreement between two or more entities to perform an a...

Q: Direct labor variances The following data is provided for Bellingham Company: DATA Standard direct l...

A: Standard costing: Under this costing method, the expected costs are used in the accounting records i...

Q: Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month f...

A: Budgeted Sales is the forecast of How much revenue a company can earn in future.

Q: Rogan Company's total sales on account for the year amounted to $327,000. The company, which uses th...

A: Estimated bad debts = 1 percent of its credit sales = $327,000 x 1% = $32,700