Help please!!! Exercise 21-14 Your answer is incorrect. Try again. Remington Inc

Question

Help please!!!

Exercise 21-14 Your answer is incorrect. Try again. Remington Inc. is contemplating the use of process costing to track the costs of its operations. The operation consists of three segments (departments): Receiving, Shipping, and Delivery. Containers are received at Remington's docks and sorted according to the ship they wil be carried o·TI e containers are loaded ont a ship, which carries them to the appropriate port of destination. The containers are then off-loaded and delivered to the Receiving Department. Remington wants to begin using process costing in the Shipping Department. Direct materials represent the fuel costs to run the ship, and "Containers in transit" represents work in process. Listed below is information about the Shipping Department's first month's activity. Containers in transit, April 1 Containers loaded 1,200 containers in transit, April 30 340, 40% of direct materials and 20% of conversion costs (a) Determine the physical flow of containers for the month. Physical flow of containers 1540 (b) Calculate the equivalent units for direct materials and conversion costs Materials Conversion Costs Equivalent units 1336 12.68

Explanation / Answer

SOLUTION

(A) Physical flow of containers for the month = Containers loaded - Containers in transit

= 1,200 - 340

= 860

(B)

Materials Conversion Costs Units off loaded 1,200 1,200 Units in Ending inventory 340 * 40% 136 340 * 20% 68 Equivalent units 1,336 1,268

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