Samantha's Office Supplies manufactures desk organizers in its Processing 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: Physical Direct Conversion Units Materials Costs 53,000 80% 50% Work in process, beginning (units) Started during current period Good units completed and transferred out during current period: Normal spoilage as percentage of good units Work in process, ending (given) Cost of Work in process, beginning Costs added in current period 190,000 200,000 8.0% 21,000 90% 30% $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: b) Compute the equivalent cost per unit for direct material and conversion cost respectively. c) Compute the costs assigned to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.

Samantha's Office Supplies manufactures desk organizers in its Processing 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: Physical Direct Conversion Units Materials Costs 53,000 80% 50% Work in process, beginning (units) Started during current period Good units completed and transferred out during current period: Normal spoilage as percentage of good units Work in process, ending (given) Cost of Work in process, beginning Costs added in current period 190,000 200,000 8.0% 21,000 90% 30% $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: b) Compute the equivalent cost per unit for direct material and conversion cost respectively. c) Compute the costs assigned to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.

Name: Question 4Samantha's Office Supplies manufactures desk organizers in
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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

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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