(1)
Production: the act of creation or developing from components or material, or the method of being so manufactured.
Finished goods:Are goods that have completed the stage of manufacturing process but have not been sold or dispersed to the end user.
To discover cost of (a) goods transferred to finished goods from production, (b)sold goods.
Concept introduction:
Process costing: It is an accounting approach that detects and accumulates direct costs and allocates indirect costs of a manufacturing process. Costs are assigned to products, generally in a big batch, which may include whole month’s production.
Production: the act of creation or developing from components or material, or the method of being so manufactured.
Finished goods:Are goods that have completed the stage of manufacturing process but have not been sold or dispersed to the end user.
Requirement 2:
To explain:
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MANAGERIAL ACCOUNTING FUND. W/CONNECT
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- Kokomo Kayak Inc. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during the month of March: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 18,000 units finished and transferred to stockroom. Work in process, end of period, 3,000 units, two-thirds completed. Required: Prepare a cost of production summary for March.arrow_forwardSpokane Production Co. obtained the following information from its records for July: Required: 1. Prepare, in summary form, the journal entries that would have been made during the month to record issuing materials to production, the distribution of labor, and overhead costs; the completion of the jobs; and the sale of the jobs. 2. Prepare schedules computing the following for July: a. The gross profit or loss for each job completed and sold, and for the business as a whole. b. For each job, the gross profit or loss per unit. (Round to the nearest cent.)arrow_forwardGunnison Company had the following equivalent units schedule and cost information for its Sewing Department for the month of December: Required: 1. Calculate the unit cost for December, using the FIFO method. 2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for. 3. What if you were asked for the unit cost from the month of November? Calculate Novembers unit cost and explain why this might be of interest to management.arrow_forward
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