Question

In: Accounting

a company in continuous production, which implements the FIFO method, provides the following data. The initial...

a company in continuous production, which implements the FIFO method, provides the following data. The initial cost of inventory is $ 16,000 and the cost of the period is $ 54,000. inventory at the beginning 600 pieces and has absorbed 75% of the costs, unit produced 2000 pieces and inventory at the end 3200 pieces. Equivalent units are 2200 pieces. Find the percentage of inventory cost absorption at the end.

a. 29.2% b. 20.3% c. 27.4% d. 25.6%

Solutions

Expert Solution

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!
A B C=A*B
A Company Whole Units Conversion % Equivalent Units Note
Total Equivalent Units               2,200.00
Less:
Opening Inventory           600.00 25%                   150.00
Units completed and finished in same month       1,400.00 100%               1,400.00
Ending Inventory- Equivalent Units                   650.00 D
Ending Inventory- Whole Units               3,200.00 E
Percentage of inventory cost absorption at the end 20.3% F=D/E

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

The company uses the FIFO method in its process costing system. Production data for the Mashing...
The company uses the FIFO method in its process costing system. Production data for the Mashing Department (first stage) for the month of January appears below: Production data: Units (gallons) in process, January 1 (materials 100% complete; conversion 90% complete). . . . . . . . . . . . . . . . . . . . . . 20,000 Units started into production. . . . . . . . . . . . . . ....
Prepare a Production Cost Report: FIFO Method (LO 8-2, 4, 5) Lansing, Inc. provides the following...
Prepare a Production Cost Report: FIFO Method (LO 8-2, 4, 5) Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T): WIP inventory—Department T Beginning inventory (15,000 units, 60% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 116,000 Department T conversion costs 53,150 Current work (35,000 units started) Prior department costs 280,000 Department T costs 209,050 The ending inventory has 5,000 units, which...
In October, Manchaca Company, who uses the FIFO method for process costing, had the following production...
In October, Manchaca Company, who uses the FIFO method for process costing, had the following production and cost data: Beginning inventory units* 42,600 October completed production 1,570,000 Units in ending inventory** 28,400 Beginning inventory cost $458,482 October direct material cost per EUP $10.74 October direct labor cost per EUP $13.88 October overhead cost per EUP $24.80 * 80% complete as to DM; 45% complete as to DL; 30% complete as to OH ** 35% complete as to DM; 15% complete...
FIFO Jarvene Corporation uses the FIFO method in its process costing system. The following data are...
FIFO Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments: Units in beginning inventory 370 Units started into production 4,290 Units in ending inventory 340 Units transferred to the next department 4,320 ________________________________________ Materials Conversion Percentage completion of beginning inventory 70% 30% Percentage completion of ending inventory 70% 50% ________________________________________ The cost of beginning inventory according to the company’s costing...
2.Factory overhead variance analysis (Two, Three, Four-way Variance method) Ezekiel company provides the following production data:...
2.Factory overhead variance analysis (Two, Three, Four-way Variance method) Ezekiel company provides the following production data: Total standard overhead cost per unit of a product: 4 hours at 3.00 per hour •Budgeted fixed factory overhead 20,000    •Normal production 2,500 units •Actual production 2,000 units    •Actual hours 7,500 hours •Actual factory overhead incurred (75% fixed) P26,000 Required: Determine the following: a. Budget factory overhead b. Standard factory overhead c. Budgeted FOH based on actual hours d. Budgeted FOH based...
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for...
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process. Work in process, January 1, 7,600 units, 80% completed $82,688*     *Direct materials (7,600 × $8.00)$60,800     Conversion (7,600 × 80% × $3.60)21,888 $82,688 Materials added during January from Weaving Department, 117,200 units $949,320 Direct labor for January 181,613 Factory overhead for January 221,972 Goods finished during January (includes goods in process, January...
Cost of Production Report The Cutting Department of Tangu Carpet Company provides the following data for...
Cost of Production Report The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that all materials are added at the beginning of the process. Work in process, December 1, 11,400 units, 60% completed $146,376*     *Direct materials (11,400 × $10.2) $116,280     Conversion (11,400 × 60% × $4.4) 30,096 $146,376 Materials added during December from Weaving Department, 175,600 units $1,808,680 Direct labor for December 350,548 Factory overhead for December 428,447 Goods finished during December (includes goods...
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for...
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process. Work in process, January 1, 1,400 units, 75% completed $ 22,960* *Direct materials (1,400 X $12.65) $17,710 Conversion (1,400 X 75% X $5.00) 5,250 $22,960 Materials added during January from Weaving Department, 58,000 units $742,400 Direct labor for January 134,550 Factory overhead for January 151,611 Goods finished during January (includes goods...
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for...
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process. Work in process, January 1, 8,400 units, 75% completed $103,740*     *Direct materials (8,400 × $9.20) $77,280     Conversion (8,400 × 75% × $4.20) 26,460 $103,740 Materials added during January from Weaving Department, 129,200 units $1,208,020 Direct labor for January 244,197 Factory overhead for January 298,463 Goods finished during January (includes goods in...
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for...
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process. Work in process, January 1, 14,600 units, 80% completed $208,488*     *Direct materials (14,600 × $10.2) $148,920     Conversion (14,600 × 80% × $5.1) 59,568 $208,488 Materials added during January from Weaving Department, 224,800 units $2,315,440 Direct labor for January 511,805 Factory overhead for January 625,539 Goods finished during January (includes goods in...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT