Determine the equivalent units of service

Assignment Help Accounting Basics

Reference no: EM131105976

E3-15 Royale Mortgage Company uses a process cost system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan department for final processing. The following processing and cost data pertain to September.

1. Applications in process on	Beginning WIP:
September 1, 100	Direct materials	$ 1,000
2. Applications started in	Conversion costs	3,960
September, 900	September costs:
3. Completed applications during	Direct materials	$ 4,500
September, 800	Direct labor	12,000
4. Applications still in process at	Overhead	9,340

September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs.

Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process.

Instructions

(a) Determine the equivalent units of service (production) for materials and conversion costs.

(b) Compute the unit costs and prepare a cost reconciliation schedule.

Reference no: EM131105976

Questions Cloud

What unit value should be attached to each painting : What unit value should be attached to each painting, assuming item-by-item application of the lower-of-cost-or-net-realizable-value rule? Prepare journal entries to record each transaction.

Calculate the current density involved in the corrosion : Calculate (a) the current and (b) the current density involved in the corrosion of the iron

What are some qualitative factors analysts : What are some qualitative factors analysts should consider when evaluating a company's likely future financial performance?

Value of a european call option with a strike price : Suppose that Bigco is currently trading for $100 per share. We know that in one year Bigco stock will sell for either $150 per share (?ogood day??) or for $75 per share (?obad day??).

Determine the equivalent units of service : E3-15 Royale Mortgage Company uses a process cost system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan department for final processing. The following processing and cost data..

What is the balance for the restructuring provision : Briefly discuss how the accounting for the restructuring provision can be used for earnings management.

Essay on the status of the glbt people : In 600- 1000 words write an essay on the status of the GLBT people in the U.S. today is not much different than it was before.

The accounts receivable balance : (Cash budget) The Accounts Receivable balance at October 1, 2000, for Skyscraper Architects was $606,900. Of that balance, $450,000 represents remaining Accounts Receivable from September billings.

Data and actual evidence suggest : From your point of view, does it make sense in light of standard macroeconomic thinking? What do data and actual evidence suggest?

User Account

All Pages