Determine equivalent units of the product, Cost Accounting

Assignment Help:

Determine Equivalent Units of the Product

Let assume there are 4,000 units of a product in ending inventory out of that 60 percent are fully complete whereas the remaining are 70 percent complete. What are the equivalent units of the product?

Solution

60% x 4,000 = 2,400 units completely complete.

40% x 4,000 = 1,120 units -Equivalent units

Net Equivalent units = 3,520 units

Assume we had net process costs of shs.7,040, after that every unit would cost shs.7,040/3,520 = shs.2


Related Discussions:- Determine equivalent units of the product

Management accounting, Management Accounting It is the part of account...

Management Accounting It is the part of accounting such provides special-reason statements and reports to other persons and management inside the organization.  The informatio

Cost accounting data and principles, Questions What are your recommenda...

Questions What are your recommendations to Ted Lapres? What aspects should he keep, what should he change, and in what sequence should he make the changes? • Do you think the D

Give annual report project, Give Annual report project: You will pick ...

Give Annual report project: You will pick a publically trade company to do the analysis on with approval of the professor . the following is an outline of what should be in th

How to calculate the cost per unit for each product , Asian Ltd makes three...

Asian Ltd makes three types of gold watch - the Diva (D), the Classic (C) and the Poser (P). A traditional product costing system is used at present; although an activity based cos

Storing and issuing materials, what is the equivalent unit for materials? i...

what is the equivalent unit for materials? if the cost of normal lots units are absorbed by the units transferred out to the next department the work in process- beginning (60% com

Traditional Costing System and Job Order Costing System, Hello, I''m curren...

Hello, I''m currently doing a research on a company and planning an Activity Based Costing system since the company is using Traditional Costing system to allocate the overhead to

Application of a hand-held clinical thermometer, In an application of a han...

In an application of a hand-held clinical thermometer for the National Health Service it is required to use disposable temperature sensors and digital read out of temperature betwe

Overhead analysis, allocate the overheads to the three departments and do t...

allocate the overheads to the three departments and do the secondary allocation of service departments

Price to set on the job, Bakeson Bearings Ltd is preparing to submit a bid ...

Bakeson Bearings Ltd is preparing to submit a bid for a bearings order.  Janet Lake,  CEO of the Manufacturing Division, has asked Jason Docker, the management accountant, to prepa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd