Question
In: Accounting
Nanjing Company uses a process costing system to track production costs. It operates three departments in...
Nanjing Company uses a process costing system to track production costs. It operates three departments in its production process. Production data for Department #2 for the month of November is given below:
|
Units |
Percent complete withrespect to DM |
|||
|
Beginning work in process inventory |
7,300 |
40 |
% |
|
|
Transferred in from Department #1 during November |
37,500 |
|||
|
Completed and transferred to Department #3 during November |
35,600 |
|||
|
Ending work in process inventory |
9,200 |
70 |
% |
|
DM is added evenly throughout the process. What were the equivalent units of production for DM in Department #2 for November?
Solutions
Expert Solution
- Requirement asked: Equivalent units for DM
Note: Since ‘method’ to be used is not given, I’ve provided the workings for BOTH the methods – the FIFO method and Weighted Average method.
- Answer by FIFO Method
|
EUP - FIFO Method |
Units |
% Material |
EUP Materials |
|
Units of ENDING WIP |
9,200 |
70.0% |
6,440 |
|
Units STARTED & COMPLETED |
28,300 [35600 – 7300] |
100% |
28,300 |
|
Units of beginning WIP |
7,300 |
60.00% [40% was already complete] |
4,380 |
|
Equivalent Units of Production |
39,120 [Answer] |
- Answer by Weighted Average method
|
EUP - Weighted Average Method |
Units |
% Material |
EUP Materials |
|
Units TRANSFERRED |
35,600 |
100% |
35,600 |
|
Units of ENDING WIP |
9,200 |
70% |
6,440 |
|
Equivalent Units of Production |
42,040 [Answer] |
ekkarill92 answered 2 years agoRelated Solutions
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