(Appendix 6A)Production and Cost Data for the Month of February

question 128

Essay

(Appendix 6A)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:

Agricultural Price Supports

Government interventions to stabilize or increase agricultural product prices through mechanisms such as subsidies or purchase commitments.

Acreage Allotments

A pre-1996 government program that limited the total number of acres to be used in producing (reduced amounts of) various food and fiber products and allocated these acres among individual farmers. These farmers had to limit their plantings to the allotted number of acres to obtain price supports for their crops.

Parity Ratio

is a measurement used to compare the value of one thing against another, often in agriculture or finance.

Prices Received

The amounts of money received by producers or sellers for their goods or services in the market.