Atlantic Manufacturing Company uses process costing 40% of the materials are add
ID: 2572523 • Letter: A
Question
Atlantic Manufacturing Company uses process costing 40% of the materials are added at the beginning of the process with the remaining materials added at the 75% completion Atlantic has stressed quality control during the past year and has The conversion process occurs evenly throughout the manufacturing p work-in-process in the month of May is 180,000 units and the total costs are $1,680,000. This is based on $800,000 of material's cost, and $880,000 for conversion costs. The beginning work-in-process is 50% complete. point of the process. reduced their spoilage to zero units. eriod. The beginning During May, 720,000 units were started with a cost of $7,452,000 for materials and $ 10,270,000 for conversion costs. The amount of ending work-in-process in May is 100,000 units which was 80% complete. Use the FIFO method to calculate: (See following page for Process Costing workspace were you will show your calculations using the five step process, but insert your answers based on the data from the Workspace to the specific questions below) Required: (a) The total current costs to complete the beginning inventory?Explanation / Answer
Given information -
note - Begnning wip w.r.t material is complete only 40% as units in Begnning WIP is completed only 50% and question define that units less than 75% material used only 40%.
and w.r.t labor no specific data has given thats why took 50% complete.
same logic is used for ending wip which is 80% complete. 100% material used and 80% labor
(a) computation fo current cost to complete the begnning inventory -
Please note all values arein $.
In case of further clarification required please comment.
% complete particulars material conversion WIP, Begnning 40% 50% started into production Completed and transferred out WIP, Ending 100% 80%Related Questions
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