BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

Solutions

Chapter
Section
BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
44 views

Assume for August that Faust Manufacturing has manufacturing costs in BWIP equal to $80,000. During August, the cost incurred was $720,000. Using the FIFO method, Faust had 120,000 equivalent units for August. The cost per equivalent unit for August is

  1. a. $6.12.
  2. b. $6.50.
  3. c. $5.60.
  4. d. $6.00.
  5. e. $6.67.

To determine

Identify cost per equivalent units using FIFO method.

Explanation

First-in first out method:

A method which separates the beginning inventory units from units produced during a period is known as FIFO method. In FIFO method, only cost incurred during a period is considered to calculate unit cost.

d.

Use the following formula to calculate cost per equivalent unit:

Cost per equivalent unit=(Cost in BWIP+Cost incurred during monthEquivalent unit)=($80,000+$

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

REAL OPTIONS Use a spreadsheet model to evaluate the project analyzed in problem 13-7.

Fundamentals of Financial Management (MindTap Course List)

In what ways is economics a science?

Principles of Microeconomics (MindTap Course List)

Define the term marketing

MKTG 12:STUDENT ED.-TEXT

PORTFOLIO BETA An individual has 35,000 invested in a stock with a beta of 0.8 and another 40,000 invested in a...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)