Refer to the Following Information About the Shaping Department of the Minnesota

question 153

Essay

Refer to the following information about the Shaping Department of the Minnesota Factory for the month of August. Minnesota Factory uses the FIFO method of inventory costing.
$$\begin{array} { l | l | l } & \begin{array} { l } \text { Equivalent } \\\text { Units }\end{array} & \begin{array} { l } \text { Total } \\\text { Cost }\end{array} \\\hline \text { Beginning Work in Process: } & & \\\hline \text { Costs from prior month } & & \$ 7,000 \\\hline \text { Materials added } & 300 & \\\hline \text { Labor and overhead added } & 375 & \\\hline \text { Started and completed goods: } & & \\\hline \text { Materials added } & 2,000 & \\\hline \text { Labor and overhead added } & 2,000 & \\\hline \text { Ending Work in Process: } & & \\\hline \text { Materials added } & 320 & \\\hline \text { Labor and overhead added } & 360 &\end{array}$$ The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and overhead is $22.00. Compute the cost that should be assigned to the beginning units that were completed and transferred during August.

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Definitions:

Legitimate Power

Power that is recognized and accepted by others within an organizational hierarchy due to a person's position or authority.

Valet Manager

A person responsible for overseeing the operation of parking services and managing valet staff.

Logical Power

Logical power, often related to the concept of rational-legal authority, depends on an individual's ability to use logic and reason to persuade or influence others.

Coercive Power

A form of power that relies on the ability to punish or constrain others to comply with orders or requests.