Homework Help is Here – Start Your Trial Now!
Business
Accounting
Problem no. 1 Spangenberg Products manufactures computer cases. All material is added at the start of production and overhead is applied to each product at the rate of 70 percent of direct labor cost. At the beginning of July, there were no units in the Finished Goods Inventory. The firm's inventory cost records provide the following information: Units DM Cost 100,000 1,500,000 Work in Process Inventory, 7/1 (70% complete as to labor) Units started in production Costs for July Work in Process Inventory, 7/31 (60% complete as to labor) 400,000 At the end of July, the cost of the Finished Goods Inventory was determined to be $ 750,000 DL Cost 5,650,000 $ 215,000 4,105,000

Problem no. 1 Spangenberg Products manufactures computer cases. All material is added at the start of production and overhead is applied to each product at the rate of 70 percent of direct labor cost. At the beginning of July, there were no units in the Finished Goods Inventory. The firm's inventory cost records provide the following information: Units DM Cost 100,000 1,500,000 Work in Process Inventory, 7/1 (70% complete as to labor) Units started in production Costs for July Work in Process Inventory, 7/31 (60% complete as to labor) 400,000 At the end of July, the cost of the Finished Goods Inventory was determined to be $ 750,000 DL Cost 5,650,000 $ 215,000 4,105,000

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 2E: Precision Inc. manufactures wristwatches on an assembly line. The work in process inventory as of...
See similar textbooks
icon
Related questions
Question

1(Cost Accounting)

 

Determine the following using the First-In First-Out (FIFO) method of process costing: 

1. Equivalent units of production for materials and conversion cost

2. unit costs, and;

3. Inventory values

Problem no. 1 Spangenberg Products manufactures computer cases. All material is added at the start of production and overhead is applied to each product at the rate of 70 percent of direct labor cost. At the beginning of July, there were no units in the Finished Goods Inventory. The firm's inventory cost records provide the following information: Work in Process Inventory, 7/1 (70% complete as to labor) Units started in production Costs for July Work in Process Inventory, 7/31 (60% complete as to labor) Units 100,000 1,500,000 DM Cost $ 750,000 5,650,000 DL Cost $ 215,000 4,105,000 400,000 At the end of July, the cost of the Finished Goods Inventory was determined to be $124,000.
Transcribed Image Text:Problem no. 1 Spangenberg Products manufactures computer cases. All material is added at the start of production and overhead is applied to each product at the rate of 70 percent of direct labor cost. At the beginning of July, there were no units in the Finished Goods Inventory. The firm's inventory cost records provide the following information: Work in Process Inventory, 7/1 (70% complete as to labor) Units started in production Costs for July Work in Process Inventory, 7/31 (60% complete as to labor) Units 100,000 1,500,000 DM Cost $ 750,000 5,650,000 DL Cost $ 215,000 4,105,000 400,000 At the end of July, the cost of the Finished Goods Inventory was determined to be $124,000.
Expert Solution
steps

Step by step

Solved in 4 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS