Determining inventory cost using a process cost system Stickel Compuny 200 ofpru

Question

Determining inventory cost using a process cost system Stickel Compuny 200 ofprubst in work improcess inventory at begh of the period It started 1,400 units during the period and transferred 1,200 units to inished goods inventory. The ending work in process inventory was estimated to be 80 percent complete. Cost data for the period follow Product Costs 15.800 29 040 Begosing balance Total 44 840 Required: Prepare a cost of production report showing the following. a. b· c The number of equivalent units of production. The product cost per equivalent unit. The total cost allocated between ending work in process inventory and finished goods inventory Cost of Production Repert for Mickel Company Equivalent Units (a.) Quantities: Actual Equivalent Units Beginning inventory Units added to production Total to be accounted for Transferred to finished goods Ending inventory Total Cost per Unit (b.) Cost Accumulation Beginning inventory Cost added to production Total Cost per unit Cost Allocation (e.) To finished goods To ending inventory Total

Explanation / Answer

Equivalent units (a.) Quantities: Actual Equivalent units Beginning inventory 200 Units added to production 1400 Total to be accounted for 1600 Transferred to finished goods 1200 1200 Ending inventory (Balancing Figure) 400 =400*80% 320 1600 1520 Cost per unit (b.) Cost Accumulation Beginning inventory 15800 Cost added to production 29040 Total 44840 Cost per unit (Total cost / Equivalent complete units) 29.5 Cost Allocation (c.) To Finished goods =29.5*1200= 35400 To ending inventory =29.5*320= 9440 Total 44840 Please hit the like button if the answer helped you else leave a comment for further clarification. Thank you! All the best!

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