7 WH Homework C16 Exercise 1710 Part Level s Exercise 1610

-7 WH Homework C16 × @ Exercise 17-10 (Part Level s\' Exercise 16-10 (Part Level s\' @ DeterminetheEquivalentL https:/.canvas assignments 162633 _ ACC-3020-1801-003 . Assignments w+ Homework C16 W+ Homework C16 Winter 2018 Home Syllabus Kimmel, Accounting, 6e CALCULATOR PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Chapter 16 Homework Santana Mortgage Company uses a process costing system to accumulate costs in its 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 September 1, 190 2. Applications started in September, 1,000 3. Completed applications during September, 710 4. Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs. Assignments People Beginning WIP: Level Submisaian) Direct materials S1,420 Inbox Conversion cost 4260 Conferences Collaborations Echo360 Re- cordings Office 365 Class Notebook Files Review Score September costs: S5,440 12,900 9,597 Direct materias Help Direct labor 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. Santana Mortgage Company uses the FIFO method. Also, assume that the applications in process on September 1 were 100% complete as to materials (forms) and 40% complete as to conversion costs. Your answer is incorrect. Try again. 1 Determine the equivalent units of service (production) for materials and conversion costs. Material Conversion Costs 4:48 PM Type here to search

Solution

FIFO Method Production Cost Report Particulars Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in process - Beginning                       190 Started into production                    1,000 Total units                    1,190 Units accounted for Goods Units Completed & transferred out: From Beginning WIP                       190                           -                          114 (0% materials, 60% conversion costs) Started & Completed (710 - 190)                       520                       520                        520 Work in process, Ending - 1,190 - 710                       480                       480                        288 (100% materials, 60% conversion costs) Equivalent units accounted for                    1,190                    1,000                        922 Materials Conversion Costs Total Costs incurred in period                    5,440                 22,497                  27,937 Equivalent Units                    1,000                       922 Cost per Equivalent Unit                      5.44                    24.40                    29.84 Assignment of Costs: Goods Units and Completed out (710 Applications) WIP, Beginning - 190 Applications                    1,420                    4,260                    5,680 Cost added to Beg. WIP in Current period                           -                      2,782                    2,782 Started and completed - 3,265 Units                    2,829                 12,688                  15,517 Total Cost of good units completed & transferred out                    4,249                 19,730                  23,979 WIP, Ending - 480 Applications                    2,611                    7,027                    9,638 Total Cost accounted For                    6,860                 26,757                  33,617