70.2K

Verified Solution

Link Copied!

Hugo, Inc. has a process costing system at its Plainfield Avenue Plant. All materials are introduced when

conversion costs reach $50$ percent complete. The following information is available for physical units during

August:

Work in process, August $1(25\%$ complete as to conversion costs$)$

Units started in August

Units transferred out to Finishing Department in August

Work in process, August $31(60\%$ complete as to conversion costs$)$

$20,000$ units

$240,000$ units

$200,000$ units

Answer Questions $6$ through $10$ assuming Hugo Inc. uses the FIFO method to account for WIP. THANK YOU Question $6$: Compute the total number of equivalent units of materials in ending inventory. Question $7$: Compute the total number of equivalent units of conversion costs in ending inventory. Question $8$: Determine the number of equivalent units of materials used to compute the cost per equivalent unit of materials added during August. Question $9$: Determine the total number of equivalent units of conversion costs used to compute the cost per equivalent unit of conversion added during August. Question $10$: If the conversion costs for August in the WIP account consisted of $$10,000$ in beginning inventory and $$330,000$ of conversion costs addeded during the month, what is the value of conversion costs assigned to ending inventory?

Answer & Explanation Solved by verified expert

See Answer