1. Compute the number of units started during July. 2. 3. Compute the number of
ID: 2332482 • Letter: 1
Question
1. Compute the number of units started during July. 2. 3. Compute the number of units started and completed. Why is the stage of completion for the work in process inventories irrelevant for these computations? 3-2. Costs of Finished Units and Work in Process. Henry's Dry Cleaners uses a FIFO process cost system. Its work in process on December 1 consisted of 8,000 gar- ments, which were 20% complete: $12,800 in processing costs were incurred last month for these garments. During December, 82,000 garments were started and 78,000 were completed. Pro- cessing costs during Decembera was 80% complete. d to $245,225. The ending work in process Question: Determine the cost of the finished garments and the cost of the ending work in process.Explanation / Answer
Equivalent unit of production = (8000*80%+70000*100%+12000*80%) = 86000 Unit
Cost per equivalent unit = 245225/86000 = 2.85 per unit
Cost of the finished garments = 12800+(2.85*76400) = $230651
Cost of ending work in process = 2.85*9600 = $27374
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