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SE 10. Red Company adds direct materials at the beginning of its production process

Price: $1.99


Equivalent Production: Average Costing Method

SE 10. Red Company adds direct materials at the beginning of its production process
and adds conversion costs uniformly throughout the process. Given the following
information from Red Company’s records for July, compute the current
period’s equivalent units of production for direct materials and conversion costs:

Units in beginning inventory: 2,000

Units started during the period: 13,000

Units partially completed: 500

Percentage of completion of beginning inventory: 100% for direct

materials; 40% for conversion costs

Percentage of completion of ending work in process inventory: 100%

for direct materials; 70% for conversion costs

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