Production and Cost Data for the Month of February for Process

question 15

Essay

Production and cost data for the month of February for Process A of the Packer Manufacturing Company were as follows:
$$\begin{array} { | l | l | } \hline \text { Productim record: } & \\\hline \begin{array} { l } \text { Units in process, February l (100\% } \\\text { complete with respect to materials; 25\% } \\\text { complete with respect to conversion cost) }\end{array} & 2,000 \\\hline \text { New units started in process } & 8 , 0 0 0 \\\hline \text { Units completed } & 7,000 \\\hline \begin{array} { l } \text { Units in process, February } 28 ( 100 \% \\\text { complete with respect to materials; } 1 / 3\end{array} & 3,000 \\\text { complete with respect to conversion cost) } & \\\hline\end{array}$$
$$\begin{array} { | l | r | r | } \hline \text { Cast recard: } & & \\\hline \text { Wark in process } & & \\\text { inventory, February 1: } & \$ 600 & \\\hline \text { Materials } & 100 & 700 \\\hline \text { Conversion } & & \\\hline \text { Costs for February: } & & \\\hline \text { Materials issued } & &2,560 \\\hline \text { Conversion } & &1,500 \\\hline \begin{array} { l } \text { Total cost to be accounted } \\\text { for }\end{array} & &\$4,760 \\\hline\end{array}$$
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:

Authentic

Genuine, original, and not a copy or imitation; true and accurate.

Consideration

Something of value that is exchanged between parties in a contract, making the agreement legally binding.

Personal Defense

A defense that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC. Personal defenses are also called limited defenses.

HDC

Stands for Holder in Due Course, referring to a party that has acquired a negotiable instrument for value, in good faith, and without notice of any defects.