(Appendix 4A)Production and Cost Data for the Month of February

question 131

Essay

(Appendix 4A)Production and cost data for the month of February for Process A of the Packer Manufacturing Company were as follows:





The company uses the FIFO cost method in its process costing system.

Required:

a) Calculate the equivalent units and unit costs for February for materials and conversion costs.
b) Determine the cost transferred to finished goods.
c) Determine the amount of cost that should be assigned to the ending work-in-process and finished goods inventories.

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Definitions:

Utility Function

A mathematical representation that defines the satisfaction or utility a consumer derives from consuming different bundles of goods and services.

Zinnias

Brightly colored flowers, belonging to the sunflower tribe within the daisy family, known for their long-lasting blooms and variety in size and color.

Utility Function

An economic model that maps an individual's preference rankings for various bundles of goods onto a set of numerical values.

Price

The financial value anticipated, necessitated, or offered in return for a service or good.