Beta Tools Ltd

question 20

Essay

Beta Tools Ltd.uses the weighted-average method of process costing.Materials are added at the beginning of the machining process and conversion costs are added evenly throughout the process.The following activity occurred in its Machining Department during November.
Units:

Costs:

Required
1.Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in,direct materials,and conversion costs.
2.Summarize total costs to account for and compute the cost per equivalent unit for each cost category.
3.Assign total costs to (a)units completed and transferred to Finished Goods Inventory and (b)units in November 30 Work in Process Inventory.

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Definitions:

Purchased

Acquisition of goods or services in exchange for money or its equivalent.

Required

Mandatory or necessary conditions or items specified for a particular purpose or activity.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Fees Earned

Income received from providing services, a form of revenue for professionals and businesses engaged in service activities.