Blackwell Corporation Uses a Process Costing System and Has Just

question 25

Essay

Blackwell Corporation uses a process costing system and has just completed production for the month of December 20xx. The following production data were obtained from the accounting records:
a. Units in beginning inventory totaled 9,000 and were 80 percent complete as of December 1 (all direct materials were added to these products in the preceding month).
b. During the period, 216,000 units were started.
c. 17,400 units were partially completed as of December 31, 20xx.
d. Ending work in process inventory was 100 percent complete with respect to direct materials and 70 percent complete with respect to conversion costs at month end.
Using the information provided, compute the equivalent units of production for direct materials and conversion costs for the month ended December 31, 20xx, assuming a FIFO costing flow.

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Definitions:

Haphazard Way

A manner of doing something that lacks organization, planning, or direction, often leading to unpredictable results.

Sunk Cost Effect

The decision-making bias where people continue an endeavor once an investment in money, effort, or time has been made, regardless of the current costs outweighing the benefits.

Availability Heuristic

A quick mental leap utilizing examples that spontaneously arise in an individual's thoughts during the evaluation of a specific subject, concept, technique, or decision-making process.

Confirmation Bias

The predisposition to explore, decode, favor, and reminisce facts in a fashion that corroborates one's preconceived notions or speculations.