Holly Company has the following information for December 1 to December 31. All d
ID: 2342296 • Letter: H
Question
Holly Company has the following information for December 1 to December 31. All direct materials are 100% complete.
Beginning balance
December 360 units, 20%
complete for conversion
Ending balance December 31,
460 units, 40% complete
Beginning balance
December 360 units, 20%
complete for conversion
$ 42,480 Completed 880 units and transferred to finished goods inventory $234,960 Direct materials 62,480 Direct labor 73,040 Factory overhead Property taxes 6,100 Depreciation 32,600 Utilities 26,500 Indirect labor 4,400 Ending balance December 31,
460 units, 40% complete
Explanation / Answer
Answer
Units Reconciliation
Units to account for:
Beginning WIP
360 [given]
Units started this period
980 [ 1340 – 360]
Total Units to account for
1,340
Total Units accounted for:
Completed & Transferred out
880 [given]
Ending WIP
460 [given]
Total Units accounted for
1,340
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
880
100%
880
100%
880
Units of ENDING WIP
460
100%
460
40%
184
Equivalent Units of Production
1,340 units for Material
1,064 for Conversion cost
EUP - FIFO Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units of ENDING WIP
460
100%
460
40%
184
Units STARTED & COMPLETED
520
100%
520
100%
520
Units of beginning WIP
360
0%
-
80%
288
Equivalent Units of Production
980 units for Material
992 units for conversion cost
Units Reconciliation
Units to account for:
Beginning WIP
360 [given]
Units started this period
980 [ 1340 – 360]
Total Units to account for
1,340
Total Units accounted for:
Completed & Transferred out
880 [given]
Ending WIP
460 [given]
Total Units accounted for
1,340
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