Calculate the equivalent units of production

Reference no: EM132970280

Question: CME Manufacturing Corp. makes widgets and uses a process costing system.

All the raw materials are added at the beginning of the process, finishing materials are added at 90% completion and conversion costs are added evenly throughout the process. Spoilage is detected at 85% completion. The following information is from the last production month: Beginning work-in-process - 40% complete 1,500 units
Units started 8,000 units
Good units transferred out 7,000 units
Normal spoilage 3% of good units transferred out
Abnormal spoilage unknown
Ending work-in-process - 60% complete 2,000 units

Required:

a) Calculate the equivalent units of production using the weighted average method of process costing.

b) Explain what would be different in the calculation of equivalent units if part a) were completed using the first in, first out (FIFO) method of process costing.

Reference no: EM132970280

Questions Cloud

How many different ways are there to pack a bag of apple : how many different ways are there to pack a bag of apple?. a. b. If exactly three are placed in a bag, how many different ways are there to pack a bag of apples

How much pulp does it produce and how much is wasted : How much pulp does it produce and how much is wasted - when there is too much pulp, the machine must slow down. This leads to increased fees for conversion

How long would it take for nico : How long would it take for Nico to save an adequate amount for retirement if he deposits $40,000 per year into an account beginning from today that pays

Calculate the raw material cost for one bottle : Calculate the raw material cost for one bottle of the new cleaner. Do not round intermediate calculations. Round final answer to 3 decimal places.

Calculate the equivalent units of production : Explain what would be different in the calculation of equivalent units if part a) were completed using the first in, first out (FIFO) method of process costing

Explain the concepts of local currency : Explain the concepts of Local Currency, Functional Currency and Presentation Currency with suitable examples and Explain the rule for translating

How management accounting information : Provide four examples of how management accounting information can be used to support a sustainability approach. (e.g. Including in product costs

What is the expected profit : What is the expected profit associated with the bid of $120,000 and Based on these simulations which bid amount value would you recommend to Mark Cuban

What is the corporations taxable income for this year : What is the corporation's taxable income for this year

User Account

All Pages