MANAGERIAL ACCOUNTING QUIZ 5 Score Name Section Problem (10 points Stallone Corp
ID: 2410322 • Letter: M
Question
MANAGERIAL ACCOUNTING QUIZ 5 Score Name Section Problem (10 points Stallone Corporation manufactures a product that requires two processes: Forming and Finishing. The company uses a process cost accounting system to accumulate costs and allocate these costs to ending work in process inventory and finished goods inventory. The products first go through the Forming Department and, when completed there, are then transferred to the Finishing Department. Once they are completed in the Finishing Department, they are sent to Finished Goods Inventory The attached information is available for the year ending December 31, 20X2. There was no spoilage or other losses in the manufacturing process during the year. REQUIRED: Compute the following, using the attached schedules provided Equivalent units for the Forming Department, assuming that this department uses the average cost flow assumption for process costing. Equivalent units for the Finishing Department, assuming that this department uses the FIFO cost flow assumption for process costing. (1) (2)Explanation / Answer
Solution 1:
Solution 2:
Stallone corporation Schedule of Physical and Equivalent units Forming Departement- Average cost method For the year ending December 31, 2012 Equivalent units Particulars Physical Units Direct Material Conversion Costs Units to Account for: Beginning WIP Inventory 5000 Units Started during period 45000 Total Units to Account for 50000 Units Accounted for: Units completed during period: From beginning WIP Inventory 5000 5000 5000 Unit started & completed during period (47500-5000) 42500 42500 42500 Total Units completed during period 47500 47500 47500 Units in Ending WIP Inventory (50000-47500) (Material 80%, conversion 60%) 2500 2000 1500 Total units Accounted for 50000 49500 49000Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.