E3-16 Using the data in E3-15, assume Verber Mortgage Company uses the FIFO method. Also assume that the applications in process on September 1 were 100% com- plete as to materials (forms) and 40% complete as to conversion costs.
Instructions
(a) Determine the equivalent units of service (production) for materials and conversion costs.
(b) Compute the unit costs and prepare a cost reconciliation schedule.
Q40
|
Production
|
|
Costs
|
|
|
1. Started and completed 8,000 units.
2. Started 1,000 units that are 40%
|
|
Beginning work in process Materials
|
$ -0-
45,000
|
|
completed at August 31.
|
|
Labor
|
14,700
|
|
|
Manufacturing overhead
|
18,900
|
|
|
*E3-17 The Cutting Department of Riehl Manufacturing has the following production and cost data for August.
Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Riehl Manufacturing uses the FIFO method to compute equivalent units.
Instructions
(a) Determine the equivalent units of production for (1) materials and (2) conversion costs.
(b) Compute unit costs and show the assignment of manufacturing costs to units trans- ferred out and in work in process.