(Appendix 6A)Dita Company Uses a Process Costing System

question 106

Essay

(Appendix 6A)Dita Company uses a process costing system.The following information relates to one month's activity in the company's Curing Department:
The conversion cost of the beginning inventory was $6,500.During the month,$112,000 in additional conversion cost was incurred.
Required:
a)(Appendix 6A)Assume that the company uses the FIFO method.Compute the following:
1.The equivalent units of production for conversion for the month.
2.The cost per equivalent unit for conversion for the month.
3.The total cost transferred out during the month.
4.The cost assigned to the ending work-in-process inventory.
b)Assume that the company uses the weighted-average cost method.Compute the following:
1.The equivalent units of production for conversion for the month.
2.The cost per equivalent unit for conversion for the month.
3.The total cost transferred out during the month.
4.The cost assigned to the ending work-in-process inventory.

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Definitions:

Denominator

In a fraction, the number below the division line, indicating the total number of parts.

Degrees of Freedom

The volume of exclusive values or quantities that can be allotted to a statistical distribution.

DfWG

Degrees of Freedom Within Groups, related to variance analysis, expressing the number of independent pieces of information within groups.

Respondents

Individuals who provide data or answers in a survey, study, or experiment.