Howard Poster Incorporated Had 12,000 Units of Work in Process

question 14

Essay

Howard Poster Incorporated had 12,000 units of work in process in Department A on October 1. These units were 60 percent complete as to conversion costs. Materials are added at the end of the process. During the month of October, 38,000 units were started and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs.
1) Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method.
2) Using the average cost method determine the equivalent units for materials and conversion costs for the month of October.

---

Definitions:

Formal Procedures

Standardized methods and processes established by an organization to conduct its operations.

Ideal Strategy

Refers to an optimal approach a business or individual could take to achieve their goals under the best possible circumstances or assumptions.

Defender Strategy

A business strategy focused on maintaining existing market share and defending against competitors through improvement in product quality, cost, and customer service.

Focus Strategy

The focus strategy is undertaken when an organization tries to target a specific segment of the marketplace for its products or services.