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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 35
COST INFORMATION
During June, Herring Associates incurred total production costs of $40,000 for copyediting manuscripts and had the following equivalent units schedule:
Required:
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? What could have caused an incorrect unit cost?
During June, Herring Associates incurred total production costs of $40,000 for copyediting manuscripts and had the following equivalent units schedule:
Required:
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? What could have caused an incorrect unit cost?
Explanation
Verified
Verified
1)
Compute cost of copyediting:
Unit c...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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