Process Costing Explain the difference and similarity between completed units and equivalent...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Process Costing
Explain the difference and similarity between completed units and equivalent completed units.
Star, Inc., manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the packaging department.
Information for packaging the department for June follows:
Work in process, June 1:
Units (30% complete) 15,000 units
Started new in June 93,000 units
Direct materials $4,000
Direct labor $3,000
Overhead $2,376
The following costs were incurred by the packaging department (last manufacturing process) during June:
Direct materials $50,000
Direct labor $30,000
Overhead $12,000
At June 30, 8,000 units (material 100%, conversion 60%) complete remained in the packaging department.
Required:
a. Calculate total equivalent units of production for June.
b. Determine the cost of goods transferred FG.
c. Determine the cost of Junes ending work in process for the packaging
d. Calculate the cost of goods sold for the month of July & prepare profit & loss statement for the month of July given Sale is $147,750, admin. expenses is $8,000 & Sales expenses is $2,400.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
