Question 4Samantha's Office Supplies manufactures desk organizers in its Processing Department. Directmaterials are included at the inception of the production cycle and must be bundled in singlekits for each unit. Conversion costs are incurred evenly throughout the production cycle.Inspection takes place at the end of the production. Spoiled units generally constitute 8% of thegood units. Data provided for March 2021 are as follows:PhysicalDirectConversionUnitsMaterialsCosts80%50%Work in process, beginning (units)Started during current periodGood units completed and transferred out53,000190,000during current period:Normal spoilage as percentage of good unitsWork in process, ending (given)Cost of Work in process, beginning200,0008.0%21,00090%30%$290,000$100,000Costs added in current period$412,880$270,412Degree of completion of normal spoilage100%100%Degree of completion of abnormal spoilage100%100%RequiredUsing the FIFO method of process costing:a) Compute the equivalent units of work done in current period for direct material andconversion cost respectively.

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Description: Question 4Samantha's Office Supplies manufactures desk organizers in its Processing Department. Directmaterials are included at the inception of the production cycle and must be bundled in singlekits for each unit. Conversion costs are incurred even

Normal Loss (In Units ) = 200,000 x 8 % = 16,000 Abnormal Loss (In Units) = 243,000 - 200,000 -…

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Accounting

Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place at the end of the production. Spoiled units generally constitute 8% of the good units. Data provided for March 2021 are as follows: Direct Conversion Physical Units Materials Costs 53,000 80% 50% Work in process, beginning (units) Started during current period 190,000 Good units completed and transferred out during current period: Normal spoilage as percentage of good units Work in process, ending (given) 200,000 8.0% 21,000 90% 30% Cost of Work in process, beginning Costs added in current period $290,000 $100,000 $412,880 $270,412 Degree of completion of normal spoilage Degree of completion of abnormal spoilage 100% 100% 100% 100% Required Using the FIFO method of process costing: a) Compute the equivalent units of work done in current period for direct material and conversion cost respectively.

Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place at the end of the production. Spoiled units generally constitute 8% of the good units. Data provided for March 2021 are as follows: Direct Conversion Physical Units Materials Costs 53,000 80% 50% Work in process, beginning (units) Started during current period 190,000 Good units completed and transferred out during current period: Normal spoilage as percentage of good units Work in process, ending (given) 200,000 8.0% 21,000 90% 30% Cost of Work in process, beginning Costs added in current period $290,000 $100,000 $412,880 $270,412 Degree of completion of normal spoilage Degree of completion of abnormal spoilage 100% 100% 100% 100% Required Using the FIFO method of process costing: a) Compute the equivalent units of work done in current period for direct material and conversion cost respectively.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.1.6MBA

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