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Computing equivalent units and cost flows under process costing (Appendix 2.1). Sanchez Company has a process cost accounting system. Sanchez incurred material, direct labor, and manufacturing overhead costs evenly during processing. On September 1, the firm had 20,000 units in process, 40 percent complete, with the following accumulated costs:
Material
$156,000
Direct Labor
80,000
Manufacturing Overhead
60,000
During September, Sanchez started 110,000 units in process and incurred the following costs:
$1,244,000
980,000
735,000
During September, Sanchez completed 90,000 units. The 40,000 units in ending inventory were, on average, 40 percent complete.
Prepare a production cost report such as the one in Exhibit 2.10 using FIFO.
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hightech inc. and oldtime co. complete within the same industry and had the following operating results in
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