Question - During June, Herring Associates incurred total production costs of $40,000 for copyediting manuscripts and had the following equivalent units schedule:
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Units completed
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190
|
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Units in EWIP X Fraction complete: 25 X .040
|
10
|
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Equivalent units
|
200
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1. Calculate the cost of copyediting one manuscript for June.
2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation.
3. What if the costs assigned to tests completed and EWIP total were calculated using a unit cost of $250? What is the discrepancy between the costs assigned and the costs to account for?