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Keigi Company

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E3-17 The Cutting Department of Keigi Company has the following production and cost
data for August.

Production Costs
Started and completed 8,000 units Beginning work in process 0
2. Started 2000 units that are 40% Materials  45,000
complete at August 31 Labor  14,700
Manufacturing overhead  16,100

Materials are entered at the beginning of the process. Conversion costs are incurred
uniformly during the process. Keigi Company uses the FIFO method to compute equivalent

(a) Determine the equivalent units of production for (1) materials and (2) conversion
(b) Compute unit costs and show the assignment of manufacturing costs to units transferred
out and in work in process.

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