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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 9
FIFO METHOD, VALUATION OF GOODS TRANSFERRED OUT AND ENDING WORK IN PROCESS
Alden Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared:
The cost per equivalent unit for the period was as follows:
The cost of beginning work in process was direct materials, $30,000; conversion costs, $25,000.
Required:
1. Determine the cost of ending work in process and the cost of goods transferred out.
2. Prepare a physical flow schedule.
Alden Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared:
The cost per equivalent unit for the period was as follows:
The cost of beginning work in process was direct materials, $30,000; conversion costs, $25,000.
Required:
1. Determine the cost of ending work in process and the cost of goods transferred out.
2. Prepare a physical flow schedule.
Explanation
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Equivalent units:
Equivalent unit's als...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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