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The Alabama Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.
Percentage Completed
Units
Materials
Conversion
Work in process, June 1
75,000
65%
45%
Work in process, Jun 30
72,500
75%
70%
The department started 237,500 units into production during the month and transferred 240,000 completed units to the next department.
Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs.
The financial statements of Lioi Steel Fabricators are shown below, with the actual results for 2006 and the projections for 2007.
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The modified accrual basis of accounting is used in presenting the fund financial statements of the governmental funds because:
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