Production and Cost Data for the Month of February for Process

question 5

Essay

Production and cost data for the month of February for Process A of the Packer Manufacturing Company follow:

The company uses the weighted-average cost method in its process costing system.
Required:
a. Calculate the equivalent units and cost per equivalent unit for February for materials and for conversion costs (use three decimal places in your calculations).
b. Determine the cost transferred to finished goods.
c. Determine the amount of cost that should be assigned to the ending work-in-process.

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Definitions:

General Journal Entries

Basic accounting records where all day-to-day financial transactions of a business are initially recorded, before being transferred to specific accounts in the general ledger.

Purchase Discounts Lost

Purchase discounts lost refer to the additional amount paid by a buyer for failing to take advantage of the early payment discount offered by a supplier.

Net Method

An accounting technique used to record purchases or sales of goods after deducting any discounts offered at the time of purchase or sale.

Discounts Lost

Charges incurred from not taking advantage of early payment discounts offered by suppliers.